11 Jan ’24 — Gap-up spoils the market dynamics, Nifty PostMortem
Nifty Weekly Analysis
The close we had on 4th Jan was 21669.6, the close today is 21669.4. Nifty moved -0.2pts this expiry. Unbelievably flat! Would have been a dream come true for traders who took home short iron fly & short straddle last week.
16mts chart link
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday “The last candle which is strongly GREEN is standing out. It looks like the 21491 support is respected for now. If we fall below that tomorrow, we will not hesitate to switch back the stance to bearish.”
4mts chart link
See how the gap-up changed the dynamics today. Firstly, there was nothing special to have a gap-up of 68pts. Secondly, this got sold into but the selling was not aggressive enough to bring down the markets lower than yesterday’s close. The price move from 14.03 to 14.11 where we got a fall of 75pts looked like a warning shot. Surprisingly there was someone at the other end, buying all of those dips. Despite those swings, the options premium were all dead and good for nothing. Far OTM sellers would have fell asleep watching the charts today.
63mts chart link
Nifty looks perfectly neutral from here, the moment the support of 21491 gives away - we can start looking for bearish opportunities. To go bullish the ATH has to be taken out. With the IT majors TCS and INFY declaring the results - we should have a strong swing direction tomorrow. Our stance stays neutral.
The close we had on 4th Jan was 21669.6, the close today is 21669.4. Nifty moved -0.2pts this expiry. Unbelievably flat! Would have been a dream come true for traders who took home short iron fly & short straddle last week.
16mts chart link
Nifty Analysis - Stance Neutral ➡️
Recap from yesterday “The last candle which is strongly GREEN is standing out. It looks like the 21491 support is respected for now. If we fall below that tomorrow, we will not hesitate to switch back the stance to bearish.”
4mts chart link
See how the gap-up changed the dynamics today. Firstly, there was nothing special to have a gap-up of 68pts. Secondly, this got sold into but the selling was not aggressive enough to bring down the markets lower than yesterday’s close. The price move from 14.03 to 14.11 where we got a fall of 75pts looked like a warning shot. Surprisingly there was someone at the other end, buying all of those dips. Despite those swings, the options premium were all dead and good for nothing. Far OTM sellers would have fell asleep watching the charts today.
63mts chart link
Nifty looks perfectly neutral from here, the moment the support of 21491 gives away - we can start looking for bearish opportunities. To go bullish the ATH has to be taken out. With the IT majors TCS and INFY declaring the results - we should have a strong swing direction tomorrow. Our stance stays neutral.
