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New weekly series Commencement: Nifty bank Nifty Outlook

New weekly series Commencement: Nifty bank Nifty Outlook

Broadly it looks market has to be in range of following.

*NIFTY* - 10091.65
Resistance: 10175.6-10279.2-10454.5
Support: 9896.7-9721.4-9617.8

*BANKNIFTY* - 20956.3
Resistance: 21266-21619.4-22263.8
India VIX has started moving higher from last five consecutive sessions and moved above 33 levels. However, it is still moving below its major hurdle of 41-43 zone. Further rise in volatility index may result into roller-coaster move in the market. Currently, PCR of Nifty stood at 1.23 and Options data suggests trading range in between 9500 to 10150 zones in coming days.
  1. SGX Nifty is down by 40, 50 points.
  2. Yesterday the shrt covering rally came.
  3. Day before yesterday, in the last one hour Nifty fell 150 points as PM speech was largely misinterpreted.
  4. Yesterday PM spoke about Economy.
  5. Then markets reversed.
  6. Reliance hit all time high once again.
  7. Banking stocks out performed.
  8. Yesterday was a bad day for Option sellers.
  9. Those who sold Call options lost heavily as Nifty shot up nearly 300 points and Bank Nifty shot up 1000 points from intraday low.
  10. Those who sold Put options also had some bad experience.
  11. India China border problem was blown out of proportion.
  12. I have been saying that its effect in stock market will be very little.
  13. Since markets made a big move, markets may consolidate today.
  14. Now FIIs have turned net buyers in Cash market.
  15. Usually markets make big moves in the last few days of expiry.
  16. So expect a good move next week.
  17. For this week, I said 9700-10350 is the range.
  18. Markets respected this range.
  19. For entire month, I said 9500-10500 is the range.
  20. That is also respected so far.
  21. Most important thing in yesterday's trade, India VIX fell.
  22. Option premiums collapsed.
  23. At some point, Bank Nifty was flat but 19000PE fell drastically.
  24. When market moves higher, India VIX moves lower, that is when Covered Call people make lot of money.
Nifty future may trade between 9980 and 10120 a narrow range.

Look How brutal market can be , yesterday those call option writers who were thinking them to be king ,badly lost as premium has turned into negative,Hence it's called market ,you can never be sure that any of strategy will always work.


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