Number of Rating Agencies, think tanks and brokerages have recently given out their estimation of what FY19-20 GDP would be around. The latest one to offer such data is NCAER (National council of applied economic research) , one of the oldest independent think tanks. It has pegged India’s GDP growth at 4.9%, so far the lowest of all estimations. Others before this were RBI (6.1%), IMF (6.1%), Moody’s (5.6%) & CLSA (5%). Market will take cognizance of this. On Friday, US markets closed at record levels when Dow Jones industrial Average crossed 28000 mark for the first time in history. On the other hand Hang Seng is dropping every day. So what do we make out of it? USD is now trading at 71.50 after 2 day fall and crude (brent) is at $63 per barrel. So world signals are mixed and stated above we have our own economic woes to take cue from. I am also posting youtube video under name Market Movers India with similar but slightly more content.
1) FII & DII data: On Friday FIIs were Net Sellers by 1008 Crs and DIIs were net buyers by 538 Crs. Thursday’s final data shows that FIIs were Net Sellers in Equity (402 Crs) and index futures (442 Crs) but Net buyers in stock futures (465 Crs). Similarly Wednesday’s final data shows that FIIs were net buyers in Equity but net sellers in Index and stock futures. What raises eyebrows is high volume of sale on Friday. We will have to wait for Monday to see what direction FIIs are taking now.
2) Option chain data : On PUT side highest total OI is at 11800 but highest Put writing is at 11900. My take is that with Nifty trading at 11895, just below 11900, take 11800 as logical support since Nifty not looking that strong. On CALL side, Highest total OI and Call writing both can be clearly seen on 12000 so 12000 is clear resistance.
3) Charts: On Friday, Nifty finished as a red Doji candle with a long upper wick and small lower wick. What it means? It clearly shows that Nifty is facing pressure from top. The high made was 11973 but closing price was 11895 (78 points down) and low made was 11879 (just 16 points below close). I have marked buying and selling areas on 15 min chart but avoid buying in Nifty till it is at support near 11800 since RR is good there.
All the best. Happy trading.
1) FII & DII data: On Friday FIIs were Net Sellers by 1008 Crs and DIIs were net buyers by 538 Crs. Thursday’s final data shows that FIIs were Net Sellers in Equity (402 Crs) and index futures (442 Crs) but Net buyers in stock futures (465 Crs). Similarly Wednesday’s final data shows that FIIs were net buyers in Equity but net sellers in Index and stock futures. What raises eyebrows is high volume of sale on Friday. We will have to wait for Monday to see what direction FIIs are taking now.
2) Option chain data : On PUT side highest total OI is at 11800 but highest Put writing is at 11900. My take is that with Nifty trading at 11895, just below 11900, take 11800 as logical support since Nifty not looking that strong. On CALL side, Highest total OI and Call writing both can be clearly seen on 12000 so 12000 is clear resistance.
3) Charts: On Friday, Nifty finished as a red Doji candle with a long upper wick and small lower wick. What it means? It clearly shows that Nifty is facing pressure from top. The high made was 11973 but closing price was 11895 (78 points down) and low made was 11879 (just 16 points below close). I have marked buying and selling areas on 15 min chart but avoid buying in Nifty till it is at support near 11800 since RR is good there.
All the best. Happy trading.