I did not trade today. I was mostly watching my 9500 CALL position, which is still open.
I had said
1. NIFTY has touched the 9050 region and reversed. It may now try to retrace and go towards 9440, upper bound. This may be successful or not.
2. From overall price action today, buying the dip in NIFTY or BANK NIFTY would be good strategy for coming days.
Given to big bang stimulus announcement, NIFTY did not take time to touch the other extreme of the range, but It could not sustain above the range.
NIFTY Opened gap up above 9550 and fell immediately to 9350. This is either failure and back to large trading range of 9050 - 9450 or may be new range is in the forming.
I have the following observations about today's price action
1. NIFTY opened gap up and sustained the gap.
3. VIX rose little over a percent.
5. BANK Nifty outperformed.
I read this action as
1. Somewhere market players are doing the maths and estimating that the impact of stimulus in the short term is minimal. Otherwise the range breakout would have been sustained.
2. The series of FM conferences will create some sector specific action, but overall stimulus bounce is behind us.
3. Since we are on the top bound of the range, the obvious bias is to again short till we breakout the range, that is close above 9450.
I had said
1. NIFTY has touched the 9050 region and reversed. It may now try to retrace and go towards 9440, upper bound. This may be successful or not.
2. From overall price action today, buying the dip in NIFTY or BANK NIFTY would be good strategy for coming days.
Given to big bang stimulus announcement, NIFTY did not take time to touch the other extreme of the range, but It could not sustain above the range.
NIFTY Opened gap up above 9550 and fell immediately to 9350. This is either failure and back to large trading range of 9050 - 9450 or may be new range is in the forming.
I have the following observations about today's price action
1. NIFTY opened gap up and sustained the gap.
3. VIX rose little over a percent.
5. BANK Nifty outperformed.
I read this action as
1. Somewhere market players are doing the maths and estimating that the impact of stimulus in the short term is minimal. Otherwise the range breakout would have been sustained.
2. The series of FM conferences will create some sector specific action, but overall stimulus bounce is behind us.
3. Since we are on the top bound of the range, the obvious bias is to again short till we breakout the range, that is close above 9450.