Weekly Market Report
Like last week, this week has been a monumental rise from the levels we ended previously. Market has been aggressively bullish and is in no mood to stop; although the red candle on 15th March was implying that the break out was fake. Almost everyday we got a gap up opening which was honestly kinda hard to trade with a directional strategy given the fact that all the movement had happened before even market opened. Delta neutral strategies have been moderately successful.
Factors that led to this
1. Russia Ukraine war issue has been already accounted for in the price and the world is not that much concerned unless there is a nuclear war.
2. Fed meeting outcome was close to expectations.
3. Oil prices have had significant correction from the recent highs.
4. There was no knee jerk reaction from USA on India’s relationship and openness to buy oil from Russia
Positive signs
1. Nifty managed to break above 21 EMA and 200 EMA as well.
2. International indices are going higher.
3. Bitcoin looking stable and forming a base since January.
4. FIIs have started buying. Bought 3111 cr in last two trading sessions.
Worrying signs?
1. Nifty pulled back from 17300 region which comes as 50% fibonacci retracement of the recent down move
2. The 21 weekly EMA is hovering around 17381 which is very close to the 50% retracemnent.
3. Banknifty is still below 200 EMA
4. Up move was simply too fast
5. Re emergence of COViD 19
What to expect?
Global markets indicate inherent bullishness for the short term. There are no catastrophic news to pull it down. There have been discussions going on regarding gap up opening. Honestly, that’s hard to predict but we can expect a green candle.
But keep in mind that this is likely to be retracement if you have a bird’s eye view and we may see some weakness.
What to trade?
Call buying can be done on indices. Stocks may show some volatility. Metals look bullish.
Like last week, this week has been a monumental rise from the levels we ended previously. Market has been aggressively bullish and is in no mood to stop; although the red candle on 15th March was implying that the break out was fake. Almost everyday we got a gap up opening which was honestly kinda hard to trade with a directional strategy given the fact that all the movement had happened before even market opened. Delta neutral strategies have been moderately successful.
Factors that led to this
1. Russia Ukraine war issue has been already accounted for in the price and the world is not that much concerned unless there is a nuclear war.
2. Fed meeting outcome was close to expectations.
3. Oil prices have had significant correction from the recent highs.
4. There was no knee jerk reaction from USA on India’s relationship and openness to buy oil from Russia
Positive signs
1. Nifty managed to break above 21 EMA and 200 EMA as well.
2. International indices are going higher.
3. Bitcoin looking stable and forming a base since January.
4. FIIs have started buying. Bought 3111 cr in last two trading sessions.
Worrying signs?
1. Nifty pulled back from 17300 region which comes as 50% fibonacci retracement of the recent down move
2. The 21 weekly EMA is hovering around 17381 which is very close to the 50% retracemnent.
3. Banknifty is still below 200 EMA
4. Up move was simply too fast
5. Re emergence of COViD 19
What to expect?
Global markets indicate inherent bullishness for the short term. There are no catastrophic news to pull it down. There have been discussions going on regarding gap up opening. Honestly, that’s hard to predict but we can expect a green candle.
But keep in mind that this is likely to be retracement if you have a bird’s eye view and we may see some weakness.
What to trade?
Call buying can be done on indices. Stocks may show some volatility. Metals look bullish.