Short Market Report 21.01.22

SHORT MARKET REPORT

Both Nifty and Bank Nifty posted indecision candles coupled with huge volatility which is ruining lives of day traders. Both fell almost 4.6% from the recent high. India vix is just spiking and everyone is worried what would happen tomorrow. Now, I can't say that I have come for your rescue but let me give you a few points as a normal human being.

1. Nifty closed right at the brink of 38.2% fib retracement which is likely to be a support

2. Bank Nifty looks more resilient given the good result of banks and having a more restricted fall (as we know bank nifty can move 4-5 times of nifty. Nifty lost 638 points in a week. BNF lost 796)

3. Nifty is trading below 21 and 50 DEMA

4. Bank Nifty is trading above 21 and 50 DEMA

5. Both indices took support at 21 EMA n weekly charts

6. Option data analysis suggests bearishness of next week to next month.

7. Hourly RSI is still below 50.

Overall, things look bearish. Even if we get a gap up... that is unlikely to sustain. Any further down move from here we can slip a lot as 37500 and 17500 might be crucial support but we have seen short covering by put writers happen almost everyday last week.

Relentless selling by FIIs is going to continue. Crude oil is sustaining happily at all time highs. The catastrophic fall might come when we hit 93 on crude oil.

So, budget happiness has died of. Expect more red.

Trading ideas: Get some put option in index with small quantity. 17500 and 37500 puts may be good after w start slipping from day's high.