Still I am not turning bearish. Nifty did not break yesterday's high like it did for past few days but broke yesterday's low and closed 24 points lower than yesterday's close finishing as a red candle. So why Am I not bearish? Because, One, Nifty is still above 11900. Two, it fell till 11861.90 and yet recovered a handsome 55 points to close at 11917. Three, FIIs were net buyers ( by 473 Crs) and they were net buyers yesterday in Equity and in index futures but net Sellers in stock futures by only 271 Crs. The market fell today because DIIs sold massively ( by their standard figures)- by 1593.71 Crs (Net Sale). Normally this doesn't exceed 700-800 Crs. Fourth reason, there is still good total OI build-up on PUT side (around 22 lakhs) at 11900 & 11800 strikes each, which is more than total OI build up on CALL side at 11900 ( 18 lakhs approx). On CALL side, highest total OI and highest fresh Call writing is still at 12000. Fifth reason, high executed today is just about 10 points lower than yesterday's high, so its not a big climb-down. So till Nifty closes decisively below 11900, I won't be bearish. Again for tomorrow, my range therefore stands at 11900 -12000. And again let me caution here, tomorrow being pre-expiry day, wild move in any direction is strongly expected.
On 15 min chart, a buying area (weak) and a selling area (strong) is marked which might turn nifty's direction in first half but in 2nd half, both of these can be broken easily, so just disregard those areas if nifty approaches any of these areas after say 1.00 pm.
All the best. Happy trading
On 15 min chart, a buying area (weak) and a selling area (strong) is marked which might turn nifty's direction in first half but in 2nd half, both of these can be broken easily, so just disregard those areas if nifty approaches any of these areas after say 1.00 pm.
All the best. Happy trading