Nifty closed with higher high and higher low figures as compared to yesterday and closed above mid line of Bollinger band- good sign, sign of strength. BankNifty too rose buoyed by good RBI monetary policy with higher high but lower low. FIIs too bought today in all segments- Equity, Index and stock futures and so did DIIs- though the volume is not much to talk about. There is good Build up on Put side too as far as Nifty’s option chain is considered. Brent crude rate too decreased. Only, dollar appreciated by huge amount ( more than 1% which is not normal). So all is looking good you will say.
BUT there is one big PROBLEM- Record fresh corona cases in country (> 1,15,000) in last 24 hours; Record corona cases in Delhi too (> 5,500). Full lockdown in lot of districts, night curfews in some and resulting problems which we saw last year. FIIs scoot the scene if there is slightest sign of trouble so in my opinion, do not long tomorrow on any indices. You may short, but there are no clean levels so the decision to short must be taken in live market depending on moves shown by indices.
BUT there is one big PROBLEM- Record fresh corona cases in country (> 1,15,000) in last 24 hours; Record corona cases in Delhi too (> 5,500). Full lockdown in lot of districts, night curfews in some and resulting problems which we saw last year. FIIs scoot the scene if there is slightest sign of trouble so in my opinion, do not long tomorrow on any indices. You may short, but there are no clean levels so the decision to short must be taken in live market depending on moves shown by indices.