Hello reader, hope you’re doing well. Early buoyancy could be seen on the back of firmness in SGX Nifty, although US markets ended mixed while several Asian gauges are displaying a negative sentiment. While intra-day markets may continue to be choppy, value buying in the beaten down counters could be seen after last week’s fall. The sentiments are however a bit dented after FIIs were net sellers in past six trading sessions to the tune of Rs 4,700 crore. Technically, Nifty may find strength only above the 17863 mark.
Important points to note:
- Even with the high level of unwinding we’ve seen at 17700 CE on Nifty, we still have around 1cr OI open, with 17800 now being the key resistance point, data wise.
- Nifty to see more momentum on the upside needs to cross previous top of 17870 levels. Crossing this can see Nifty touching the 18000 mark by either the end of this week or first expiry session in May.
- ICICI bank, one of the leaders in Banknifty in this current rally, needs to cross the 920 mark for further upside.
- Canbk doing pretty well, 2% up from yesterday’s close, post mention in yesterday’s post about a good scalp trade here.
- One interesting point to observe, large speculators/hedge funds back to seeing largest net short position in S&P 500 futures since 2011, chart shared below –
Another thing so many participants focus on is taking a good trade, which is overrated, but they do keep forgetting that avoiding a bad trade is so underrated.
As always, risk management is key, and a proper system in place prevents one from losing out too much, in case of outlier events. Have a good trading day, and may the force be with you!
Disclaimer: this post is for educational purposes only, we are not SEBI registered analysts. Trades mentioned here are not trade recommendations. Equity Investments are subject to 100% market risk, please consult your financial advisor before investing.