- U.S Markets closed mixed yesterday.
- Right now Dow futures are slightly lower.
- Asian markets are lower.
- SGX Nifty is trading at 18330.
- Indicating a 100 point gap up today as well.
- This could be due to good results declared by IT companies.
- Infy in particular has come out with spectacular results
- TCS and Wipro set of numbers also look appealing.
- Also today is weekly expiry and lot of call writing has taken place at higher levels from 18200 to 18400.
- So this gap up could cause option writers specially call writers in trouble.
- Yesterday the ViX was also down 3%.
- Option premiums are quite low now considering January month end expiry is quite far.
- Inflation data is also high in India near about 5.5%.
- Which is a worrying sign and could invite rate hikes by RBI in future.
- I feel we are in a pre budget rally and this could fire till 18600.
- From there we should re consider bullish stance.
- Any sort of dip towards 18200 is a buying opportunity for the day.
- Right now we have a good swing trading set up.
- Buy at 18200 with stoploss of 18k and targets of 18600 (1:2)
- Nifty might Trade between 18200 to 18400 today.
- stockmarketadvisory.in
1. U.S Markets closed lower on Friday. 2. Dow Jones was flat. 3. Nasdaq was the underperformer. 4. Gift Nifty is down 30-40 Points. 5. Asian markets are mostly lower as well. 6. Friday the Nifty opened with a gap down of 200 points. 7. Within the next 10 minutes , Nifty recovered 100 points. 8. Bulls expected recovery is on the cards but Nifty started to Crack. 9. Bank Nifty was holding up Nifty for most of the while. 10. It couldn't be able to provide much of a support and Bank nifty also began to correct. 11. The issue now is market has had vertical rallies. 12. One way quick rallies so now the downfall will also be vertical. 13. When markets go up quick , they come down quicker. 14. Infy dragged the mood and also HUL didn't post extraordinary results so it was also a laggard. 15. Banks tried hard to hold the markets but couldn't. 16. Over the weekend , AU Bank and icici bank reported very good numbers. 17. These banks have already rallied a lot before results
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