One more day for Indian markets to close in red due to selling pressure on Banking , IT , Auto and other stocks.
Where as Nifty tanked 66.20 points , Sensex dropped 185.93 points and Bank Nifty fell 349.10 points.
We expected Bank Nifty breakdown on yesterday and it happened yesterday but the fall is just 349 points due to the support of HDFC Bank , bank Nifty didn't fell too much.
Where as FIIs and DIIs were both on buying side , FIIs bought 116.63 crores and DIIs bought 1810.05 crores.
India VIX fell 3% and closed near to the 13.
Few days back we mentioned about this new cycle in the market , as you can observe VIX is getting lower day by day but FIIs are not much active and markets are closing lower and definitely we need to adopt this market to survive in stock market in future.
Bank Nifty making low volume moves with high volatility and the premiums are also not that much high, usually Friday premiums are 650 to 700rs but from past few weeks the premiums are just 400 to 450rs on Friday so that is the reason why writers are building at ATMs , because the writers need high premiums to sell so they are choosing ATMs rather than choosing OTMs and that's why we are seeing range bound moves in the market.
Don't force yourself into trades on days likes this & many will struggle to find a trade in this market .... if beginners don't trade with discipline then for sure their accounts will get wiped out during this phase .
" NOTHING IS PERMAMNENT " , remember no cycle or no system is permanent in the market and even this cycle will also change in coming days but the question is when we get normal days ? today? tomorrow ? No, we cant tell that but we need to wait for normal days and until that trade on perfect entries with less capital rather than going with naked quantities.
Coming to Global markets :- Last night U.S and U.K markets are closed in flat and currently Dow Jones , Nasdaq and U.K futures are trading at flat.
Most of the Asian futures are trading in positive.
SGX Nifty is up by 40 points as of now.
Coming to India :- Today our markets may open with gap-up based on SGX Nifty and global markets clues.
Usually markets will take some breathe when they reached to ATHs and exactly this what happening on Nifty 50 right now as it is consolidating in a big range of 15,800 to 15,500 so we are expecting same range moves by today also.
Bank Nifty had a wide range of 35,715 to 33,950 and once it taken out to any onside then we will see a rally of 1000 points to breakout side.
Muted global clues , low VIX , less volume and low premiums ...with all these things its better to avoid the opening trades and wait for best entries after 10 A.M based on weightage stocks moves.
The one who is looking for support and resistances based on OI data with chart analysis :- Nifty had a resistance at 15,835 and support will be 15,727 and next will be 15,675.
Bank Nifty had a resistance at 35,380 and next will be 35,520 , 35,715 is the main resistance and support will be 35,000 and 34,539.
All The Best , Trade With Discipline.