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Nifty Bank nifty outlook and expectations 12th June


  • US markets fell nearly 7%.
  • Second wave of Corona Virus, Fed cautious outlook for Economy, Nasdaq trading at all time high, all contributed to huge profit booking.
  • All stocks that shot up, airlines, cruise liners, all that benefit due to opening up of Economy, came under severe selling pressure.
  • In Feb 2018, Dow fell 5% during the market hours, when Asian markets opened next day morning, Dow Future fell another 5%.
  • Probably Institutional sell data was very bad that day.
  • But today, after falling 7% yesterday, Dow Futures is up nearly 300 points.
  • So that reduces damage in Asia.
  • SGX Nifty hit a low of 9400 yesterday night, now trading around 9600.
  • In fact we partially factored in in yesterday's trade.
  • We should not fall more than 2 to 3%.
  • DIIs may step in, in the afternoon to support the market. We can expect some recovery towards the end of the day.
  • Who knows? Govt may reduce GST rates in today's GST Council meet.
  • If anything like that happens and if US markets recover tonight, we see interesting Monday.
  • Markets have been highly volatile since May.
  • But Corona problem is getting worse in India, now India is fourth most affected country.
  • Yesterday both FIIs and DIIs have sold for more than Rs 800 crores each in Cash market.
  • Nifty 9900 was a good support but that was broken yesterday.
  • Next support is at 9500. With today's expected fall Nifty would have retraced 50% of the last rise from 9800 to 10350.
  • So logically that should be a good support.
  • Though there is an increase in Corona infections in US, US has no intention of closing the Economy.
  • I will not be surprised if Nifty closes above 9700 today. 
  • SGX Nifty seems to be over reacting. 
  • But markets will be under pressure in the morning, may be some margin Calls.
  • Now Nifty 10000 will be the resistance for the rest of the series.
  • So I am planning to sell CE above 10000.
  • SGX Nifty seems to be over reacting. 
  • Nifty future may trade between 9500 and 9800

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