Last night, when WHO announced covid-19 outbreak as pandemic and in the same breath added that they are using this term with care, it was foregone conclusion that markets will tank. So when DJIA started breaking one support after another I decided not to post video or post because no commentary or level would be predictable. I do not know if there was ever an 830 point fall in intra-day movement! 8.3% fall could be there during last recession, around 2008, I think. And tomorrow- we have Friday the 13th! Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. As of now, European markets are trading in red (FTSE: -9.35%; CAC: -10.12%; DAX:-9.71% ) and DJIA is trading 7.42 % down. Provisional figures show that FIIs were net sellers, as always, by 3475 Crs and DIIs were net Buyers, again as always by, 3918 Crs. The final figures for yesterday also show that FIIs sold heavily in Equity but bought some index and stock futures. So the FII focus is clear- keep selling till the dark clouds are clear. Option chain is still inconclusive about support and resistance. To tell honestly, there just cannot be any reliable levels if Nifty has dropped by 1660 points (14.76%) in just 5 trading sessions, because at such low levels who can short? And if the strength of breakdown is such how can one be sure that it may not fall further, if I buy and incur loss! On Daily chart, Nifty is completely outside the lower band of Bollinger band and RSI is at 13.05 (but again this situation is there since past 4 days). So can we buy? I don’t think so. Nifty will have to spend some days in consolidation for that to happen. As for selling levels, those are shown on 15 min chart. Please trade using SLs since we are dealing with heavy volatility (INDIA VIX is at 41- a high visited during May 2014- election results time!)
All the best. Happy trading.
All the best. Happy trading.