Frankly speaking, it rarely happens that levels I prescribe for Nifty
(BNF), both get honoured. Today was one such day, so hope few traders did earn something. Though the trading range was narrow and volumes low due to 1st January taken off by many, 50 point profit in Nifty
and 200 point profit in BNF was achieved. Now what about tomorrow? Please check my video posted on youtube under channel name Market Movers India for slightly more analytical content. Today markets opened on the back of 2 news- core sector output shrinks by 1.5% (meaning negative 1.5%) and Fiscal deficit at 115% of annual target (meaning what deficit we should have incurred by 31st March, 2020- was reached by end of November), according to CAG
report. Today being 1st Jan, auto sales figures were expected and people in the know, knew that it won’t be good. All this prepared for today’s fall. However, due to limited activity and low volumes, fall was muted. A look at FII
and DII figures today show this. However, final FII
figures for 31st December show that FIIs were net buyers by 1955 Crs
in Equity but Net sellers in index futures
by 693 Crs
and in stock futures
by 1271 Crs
(big figures both considering year-end holiday season is underway). This shows that FIIs are buying selectively in cash.
Option chain figures show that there is good resistance at 12200 & 12250, both strikes, and support divided between 12100 and 12150. Daily Chart
shows that Nifty
today made a red candle but with lower high and higher low. Maybe again, due to low volumes today. But tomorrow being expiry, wild movements will happen and either of the yesterday’s limits (High-12247 and Low-12151) are very likely to be broken. Nifty’s 20 DEMA
is at 12131, so buying can emerge from that level and selling is expected if Nifty
reaches 12200. Another selling area is also marked on 15 min chart if Nifty
rises till around 12230. So one can trade on both sides.
All the best. Happy trading.