Weekly Market Report
Both indices closed in firm red after a huge gap down opening. Although the gap was covered by the first half of the day, at 1:30 PM FIIs stepped in and sold heavily as bulls had prepared a massive playground for them to exploit. They just sold for 7631 cr which happens to be the highest in this calendar year.
Markets are being driven by global cues and the only cue is the Russia Ukraine war and its repercussions. Crude Oil and Natural Gas have sky rocketed and are expected to rise further. Russia is hell bent on achieving its military goals and it seems like no diplomatic solution is going to be reached as of now.
Coming back to technical analysis, both indices trading decisively below 200 EMA is giving some indications of a bear market unless we don’t see some concrete outcome from the war. All strong supports have been broken and a lot of analysts have been proven wrong and most of the traders are losing money. Try not to believe the spooky profitable screenshots which seem too good to be true. It is not possible to win with a bearish view when sudden bullish moves comes so strong that it takes out day high and covers the gap, and ruin your position even if you are an option seller.
There is some funny stuff happening as per option data. Nifty has a crucial resistance at 16500 and no significant support. Banknifty has strong support at 34000 but no monumental resistance. My proprietary trading system, for now, suggests that Nifty is bearish and Banknifty is bullish on a weekly time frame.
What to expect this week? Expect the Russia Ukraine turmoil to reflect in our markets as everything has become so much news driven.
What to trade? Positional trade in weekly options can be the better way to tackle this volatility. Since, option premiums are high, returns can be good
Just as a safe margin, sell Puts below 33000 in banknifty and calls above 16800 in nifty. Weird trading strategy but just might work. Better to avoid trading and add some stocks in the dip by doing sip and buying in parts.
Bias Bearish
Conviction Bearish
Both indices closed in firm red after a huge gap down opening. Although the gap was covered by the first half of the day, at 1:30 PM FIIs stepped in and sold heavily as bulls had prepared a massive playground for them to exploit. They just sold for 7631 cr which happens to be the highest in this calendar year.
Markets are being driven by global cues and the only cue is the Russia Ukraine war and its repercussions. Crude Oil and Natural Gas have sky rocketed and are expected to rise further. Russia is hell bent on achieving its military goals and it seems like no diplomatic solution is going to be reached as of now.
Coming back to technical analysis, both indices trading decisively below 200 EMA is giving some indications of a bear market unless we don’t see some concrete outcome from the war. All strong supports have been broken and a lot of analysts have been proven wrong and most of the traders are losing money. Try not to believe the spooky profitable screenshots which seem too good to be true. It is not possible to win with a bearish view when sudden bullish moves comes so strong that it takes out day high and covers the gap, and ruin your position even if you are an option seller.
There is some funny stuff happening as per option data. Nifty has a crucial resistance at 16500 and no significant support. Banknifty has strong support at 34000 but no monumental resistance. My proprietary trading system, for now, suggests that Nifty is bearish and Banknifty is bullish on a weekly time frame.
What to expect this week? Expect the Russia Ukraine turmoil to reflect in our markets as everything has become so much news driven.
What to trade? Positional trade in weekly options can be the better way to tackle this volatility. Since, option premiums are high, returns can be good
Just as a safe margin, sell Puts below 33000 in banknifty and calls above 16800 in nifty. Weird trading strategy but just might work. Better to avoid trading and add some stocks in the dip by doing sip and buying in parts.
Bias Bearish
Conviction Bearish
