On Muhurat day trading, with one hour trading session, there has been continuous sell off with no respite. The critical level 10189 is breached and Nifty Future closed at 10118, 28 points below Nifty Spot (10146) at a discount.
Bank Nifty was the main index to drag the Nifty down. It opened with 100 points gap down and the slide was unabated till the end. It ended at 23890. The decline was exactly 500 points from previous day close of 24391. Bank Nifty spot stood at 24010, BNF is at a discount of 120 points.
This kind of close at discount signifies further weakness. Since we are the last week of the expiry do not short Nifty or BNF as there could be a bounce back on the last two days if it does not go below 10045/23750 level. This is likely to complete the down cycle for this expiry.
The Volatility Index is at high above 12% .
This could bring the index down further on Monday. Unless VIX cools, the chances of recovery in Nifty is remote.
Wait for first 15 minutes on Monday to watch opening of VIX and Rupee. If both signals weakness persisting, then you can go for PUT option.
Nifty Future support level : 10045/9950 Resistance: 10163/189/206
Bank Nifty Future Support Level : 23757/609 Resistance 24003/080/176/245
Happy Trading!!
Sir, Should the VIX stand for on Monday less than 12? For upmoov of NF?
ReplyDeleteIf it cools then move should be up. Most likely it is a play on Monday with VIX around 11.5-12. Nifty may not give clear direction till key bank results come out.
ReplyDeleteGood morning Sir
ReplyDeleteI will watch for 10052