Just In - NORTH KOREA could test a hydrogen bomb in Pacific Ocean, the country’s foreign minister has reportedly warned.
News trading is one of the important skills a trader must possess and capitalize on. With all those detonating news and the cold war going on between the heads of both the U.S & North Korea is putting markets under tremendous pressure in such a case technical analysis become a tad bit less important and the fundamentals take the upper hand. Look for the resistance and sell should be the basic strategy over here. As mentioned yesterday if Nifty closes below 10086 then that would be a signal of further downfall in the market. Keep an eye.
Well, the news did show its effect on all of the markets but ours was a bit aggravated. Actually the Big Players just needed a trigger and nothing else and the market was gonna fall anyway for many reasons but I will mention only a few of them below,
1)The OI flux of the last week - especially on 21st Sept the 10100CE saw the OI change of over a million on the positive side whereas the 10000PE lost over a million OI in the last three days.
2)Continuous FIIs selling also adding to the pressure.
3)Nifty was forming a bearish flag on the daily chart.
Also, I did mentioned few other points on 21st of Sept in the chart below