📊SHORT MARKET UPDATE📊
The bear flag that had formed in nifty paved the way for today's downfall and we have fallen out of that interim rising channel. The downfall is likely to continue and the next level of significance is 17600 from where last time we bounced back to form the bear flag. In case of bank nifty, it is entering a zone where previously bank nifty took support or got resistance multiple times. Bank Nifty has already corrected 10% from the recent highs. We might be looking at another 1000 points on the down side owing to the big banks going in red. From there things will get tricky because a lot of investors would want to get in individual stocks but bears will look for shorting. Nifty and Bank Nifty option data shows fresh short of call options almost all strike prices. Bank Nifty put call ratio is also above 1. This is open to interpretation but in case of bank nifty this data can be interpreted as bearish given the fact that Fresh long is happening in PUTS at OTM and below. Overall, maintain bearish bias.
✅17900 PE went from 138-151
✅38500 PE went from 612-709
Both of these were mentioned in last short market update
You need to understand the psychology and that is panic. People sell in panic and that's why the down trends work so fast. Given this fact, institutions and big traders would like to make use of that panic.
The bear flag that had formed in nifty paved the way for today's downfall and we have fallen out of that interim rising channel. The downfall is likely to continue and the next level of significance is 17600 from where last time we bounced back to form the bear flag. In case of bank nifty, it is entering a zone where previously bank nifty took support or got resistance multiple times. Bank Nifty has already corrected 10% from the recent highs. We might be looking at another 1000 points on the down side owing to the big banks going in red. From there things will get tricky because a lot of investors would want to get in individual stocks but bears will look for shorting. Nifty and Bank Nifty option data shows fresh short of call options almost all strike prices. Bank Nifty put call ratio is also above 1. This is open to interpretation but in case of bank nifty this data can be interpreted as bearish given the fact that Fresh long is happening in PUTS at OTM and below. Overall, maintain bearish bias.
✅17900 PE went from 138-151
✅38500 PE went from 612-709
Both of these were mentioned in last short market update
You need to understand the psychology and that is panic. People sell in panic and that's why the down trends work so fast. Given this fact, institutions and big traders would like to make use of that panic.