Factors in support of BULLS:
1) Nifty opened 150 points gap down but rallied right after start, clocked in a high of 14673 ( +192 points from low) and closed at 14634 (153 points above low). Similarly Banknifty too opened gap down but closed 660 points above its day’s low. So both indices recovered from lows significantly after gap down openin,g primarily due to very weak global cues and Covid hangover.
2) Total Covid cases declared today were less than that announced yesterday and day before so cases might be reducing.
3) DIIs were net buyers worth around 553 Crs even though FIIs sold heavily.
4) As per Nifty option chain, total OI and Put writing is better on PUT side than on CALL side – Near LTP, highest total OI (38,606 lots) and highest fresh Put writing (13,915 lots) is seen on 14500. At 14400 too there is good total OI and Put writing to back up. On Call side, Highest total OI (58,560 lots) and Fresh Call writing (18,157 lots) both are far away at 1500 strike, meaning Nifty has so much upside!
5) SGX Nifty, at the time of writing this was trading at 14723 and DJIA is trading 312 points up so global market scenario for tomorrow looks positive.
Factors in support of BEARS:
1) Nifty closed just at yesterday’s close so not much gain over previous close. Further, both Nifty and Banknifty couldn’t close significantly above their respective mid lines of Bollinger Band signifying a resistance for both the indices.
2) It is historic occurrence that every Monday ( and sometimes even Tuesday) cases show decline because lot of testing labs don’t work on Sundays so they don’t report figures on Monday. So there is decline in figures reported on Monday or Tuesday but then it jumps massively on Wednesday.
3) FIIs sold massively in cash (- 2289 Crs) and also in index (-1916 crs) and stock futures (-193 crs) showing it is in mood to wind up a lot of positions.
So I rest my case for Bulls as well as bears- take your pick and trade.
1) Nifty opened 150 points gap down but rallied right after start, clocked in a high of 14673 ( +192 points from low) and closed at 14634 (153 points above low). Similarly Banknifty too opened gap down but closed 660 points above its day’s low. So both indices recovered from lows significantly after gap down openin,g primarily due to very weak global cues and Covid hangover.
2) Total Covid cases declared today were less than that announced yesterday and day before so cases might be reducing.
3) DIIs were net buyers worth around 553 Crs even though FIIs sold heavily.
4) As per Nifty option chain, total OI and Put writing is better on PUT side than on CALL side – Near LTP, highest total OI (38,606 lots) and highest fresh Put writing (13,915 lots) is seen on 14500. At 14400 too there is good total OI and Put writing to back up. On Call side, Highest total OI (58,560 lots) and Fresh Call writing (18,157 lots) both are far away at 1500 strike, meaning Nifty has so much upside!
5) SGX Nifty, at the time of writing this was trading at 14723 and DJIA is trading 312 points up so global market scenario for tomorrow looks positive.
Factors in support of BEARS:
1) Nifty closed just at yesterday’s close so not much gain over previous close. Further, both Nifty and Banknifty couldn’t close significantly above their respective mid lines of Bollinger Band signifying a resistance for both the indices.
2) It is historic occurrence that every Monday ( and sometimes even Tuesday) cases show decline because lot of testing labs don’t work on Sundays so they don’t report figures on Monday. So there is decline in figures reported on Monday or Tuesday but then it jumps massively on Wednesday.
3) FIIs sold massively in cash (- 2289 Crs) and also in index (-1916 crs) and stock futures (-193 crs) showing it is in mood to wind up a lot of positions.
So I rest my case for Bulls as well as bears- take your pick and trade.