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Pullback Rally? (21st August 2023)


1. U.S Markets closed flat on Friday.
2. Right now , Dow futures are slightly higher.
3. Asian markets are mixed.
4. Gift Nifty is up 20 points.
5. Markets have been going through a volatile phase in August.
6. With no clear trend and gap ups / gap downs almost on daily basis.
7. Expecting August to be more of a sideways type of Month.
8. Bank Nifty looks to have made a short term bottom.
9. Bank Nifty is finding heavy supports near 43500 levels.
10. Nifty has thrice hit 19260 and has failed to close below the same.
11. There's no fresh bearishness in the Markets.
12. More pressure is likely to enter only if we close below 19260.
13. Today's key trigger is Jio Financial services listing.
14. This could well decide the mood of the markets today.
15. Both the Indices , Nifty and Bank Nifty have supposedly hit a short term bottom and we can expect a short term pullback from here on.
16. Stoploss should be near the Fridays low of 19250 on Nifty and 43500 on Bank Nifty
17. With tight stoplosses , risk - reward for going long at the current levels in quite favorable.
18. If you remember,  2 years ago there were news about Evergrande going bankrupt.
19. Evergrande is the China's largest real estate company.
20. Worlds top 3 real estate companies and its existence is coming to an end.
21. Now it has applied to the Foreign court authorities to provide time so that they could internally plan on becoming sound once again.
22. They have just filed an application for the stay on insolvency order and not for declaring them insolvent.
23. This isn't as much of a negative news as markets expected it to be
24. Nifty might trade between 19250 to 19450 today. 
25. 19400 CE has more than 3 crore open interest.
26. This is one of the highest open interest positions I've seen in a long time.
27. Once these people are trapped then the short covering could be huge.

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