- U.S Markets closed higher Yesterday.
- Right now , Dow Futures are lower.
- SGX Nifty is up 200 Points
- 100-150 point gap up / gap down has become a normal routine now
- U.S VIX crashed 7% Yesterday.
- This is a good sign for option sellers and also markets.
- As Volatility would reduce and markets find stability.
- Today as per SGX we are likely to open above 17k.
- 17k CE has the highest open interest for today's expiry
- If we sustain above 17k and cross Yesterday's high of 17100 this will induce huge short covering.
- Today is expiry so crazy things happen on expiry days.
- This is because of expiry related issues etc.
- Another Possibility is FII's use this gap up as an Opportunity to sell big .
- Previous 6 trading sessions, FII's have sold for 16500 crores
- This is intense selling owing to Rupee depreciation.
- Today will they again use this as an opportunity to sell or will cover shorts.
- We shall know by the first hour price action.
- Generally on expiry days we have an inside candle
- Which is yesterdays trading range.
- Yesterday's range was 16800 to 17100.
- If any of these levels gets taken out then we are likely to have a big trending day.
- Chasing a 200 point gap up isn't advisable.
- I would rather like to short near 17050-17100 with a 50 point stoploss.
- This gives me a Risk reward ratio of 1:3 , 1:4.
- Nifty might Trade between 16800 to 17100 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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