After a long time we reacted to global market cues. Even though DJIA didn’t show much decline, from high to low it was 350 points down and NASDAQ closed 2.63% down last night. Today morning, all indices were in red and crucial SGX Nifty was more than 200 points down. So what I wrote yesterday did happen but most of us just couldn’t trade the short because Nifty opened gap down and then naturally went up since we actually are not showing any sign of weakness.
Not surprisingly, both FIIs and DIIs were net sellers today by 336 Crs and 676 Crs respectively, in cash market. FIIs were net seller in Index futures by a whopping 2220 Crs (almost 67% more than buy figures) and net seller in stock futures too by 1090 Crs which is close to normal. But index future sale figure is a troubling sign which tells me that if global cues are weak tomorrow also, FIIs will continue to sell nifty heavy stocks or index futures.
Option chain will not be able to provide correct picture considering that tomorrow we have weakly expiry in indices also.
Nifty 20 DEMA is at 14690 and Nifty Bollinger band mid line is at 14700 (20 DSMA). So Nifty is likely to find support somewhere between the two averages. Tomorrow, if Nifty does drop to these levels, one may consider going long but it should be in first half otherwise avoid it. But why would it open gap down? One because, all European markets and US markets are in deep red at the time writing this. Two, because tomorrow Covid figures are likely to be more than what were on Monday and tuesday ( for reasons mentioned in earlier write ups). So if the situation continues as it is now, expect gap down then rise up, then again some sell-off and then expiry.
Not surprisingly, both FIIs and DIIs were net sellers today by 336 Crs and 676 Crs respectively, in cash market. FIIs were net seller in Index futures by a whopping 2220 Crs (almost 67% more than buy figures) and net seller in stock futures too by 1090 Crs which is close to normal. But index future sale figure is a troubling sign which tells me that if global cues are weak tomorrow also, FIIs will continue to sell nifty heavy stocks or index futures.
Option chain will not be able to provide correct picture considering that tomorrow we have weakly expiry in indices also.
Nifty 20 DEMA is at 14690 and Nifty Bollinger band mid line is at 14700 (20 DSMA). So Nifty is likely to find support somewhere between the two averages. Tomorrow, if Nifty does drop to these levels, one may consider going long but it should be in first half otherwise avoid it. But why would it open gap down? One because, all European markets and US markets are in deep red at the time writing this. Two, because tomorrow Covid figures are likely to be more than what were on Monday and tuesday ( for reasons mentioned in earlier write ups). So if the situation continues as it is now, expect gap down then rise up, then again some sell-off and then expiry.
Comment:
Nifty BB midline is at 14600. By mistake it got written as 14700. So take the support range as 14600 -14700.