Friday night saw negativity return to stock markets. DJIA and other European markets ended in red. One reason could be the Tencent (biggest tech and media conglomerate in China) report which mentioned the death toll at much much higher (24,589) than official figures on their website for a very brief period after which they put out Chinese govt figures (around 763). Later Tencent denied and blamed that on aggregation by ‘epidemic situation tracker’ software. Coming to our markets, Nifty too ended in red but glimmer of strength was that in Nifty 50 stocks, advances to declines ratio was 1:1 despite around 40 point fall in Nifty. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content where I have talked a bit more about effect of corona virus on world and on Indian markets. FIIs were net buyers (162 Crs) and DIIs were net Sellers (178 Crs) on Friday. So FIIs will now remain mostly on sidelines till the situation is clear w.r.t. corona virus. Not that they are pulling out money but will continue to book profits and at the same time stay invested in value picks, it seems. Option chain shows bearishness since contracts on both Put and Call side are building towards short positions. On PUT side, highest total OI and 4th highest fresh Put writing is at 12000. So it looks like OK support for tomorrow but top three fresh Put writing are seen at strike prices 11900, 11800 and 11950 respectively. That shows less confidence of Put writers. On CALL side, 12200 is clear resistance since highest total OI and fresh Call writing both are seen at this strike price. On daily chart, Nifty made a lower low and lower high candle with lower close which took support at 20 DEMA. This however doesn’t prevent our markets going below that level if Asian markets are in negative on Monday morning. So Asian markets’ opening levels and their status at 9 am is very important tomorrow. As for levels, Buying levels are shown on 15 min chart and one can sell Nifty confidently if it is between 12,175 and 12,200 even though nothing is seen to this effect on charts.
All the best. Happy trading.
All the best. Happy trading.