NIFTY and BANKNIFTY for 11th March

NSE:NIFTY   Nifty 50 Index
Our markets did not work today but other Asian markets closed in green; European markets currently are trading in green, up by 2-2.4% and DOW futures are also trading 3.09% up by 738 points at the time of writing this post. So we assume that US markets will open in green. But all will depend on how they close tonight and how other Asian markets open tomorrow based on that closing. Our markets have suffered a massive 7.26% fall (818 points down) in just last 2 trading sessions. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. FIIs are completely nervous and are selling big time. On Monday FIIs were net sellers by 6595 Crs and DIIs were net buyers by 4975 Crs . So you see, DIIs are using every opportunity and penny to buy whatever FIIs are dumping. I haven’t seen such big one time Net Sale figure from FIIs. And FIIs do not seem to stop Selling. Two main reasons for this big fall were corona virus wreaking havoc in Italy and around the world, and massive price drop in oil prices due to ramping up production by Saudi Arab as a result of talks failure between OPEC and Russia for oil production cut. The total cases due to virus are more than 116,000 and deaths have crossed a figure of 4000. Entire Italy is under lockdown after massive jump in cases (9172) and deaths (463) in that country due to corona virus. As for our country, we have 9 new cases with total number now reaching at 56. Again, the scare is still there. Therefore, markets too are not showing any signs of recovery. Option chain doesn’t show any strike as a rock solid support and even good resistance is seen at 11000 (Highest total OI and Call writing)- a whopping 550 points up. Now what does this mean? In my opinion traders think that if ever the recovery starts, it will be so fast and swift now that it is possible that nifty can jump 300-500 points in one session alone. And exactly this sentiment is echoed by INDIA VIX chart which went up to a high of 34 and then closed yesterday at 30.8 – surpassing previous high made on 22nd May 2019. On daily chart , Nifty has closed outside Bollinger band and RSI is at 19.18 – a lot oversold! Similarly Banknifty too is completely outside the Bollinger Band and RSI is at 19.07. So tomorrow, if Asian markets open in green with good gap-up a recovery may be seen. As for levels, no levels will be followed and adhered to if Nifty / Banknifty starts falling or rising with speed, fuelled by FIIs or DIIs, respctively.
All the best. Happy trading.


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