US Stimulus news is an excuse to book profits.
Will nIfty close above 13500 today?
Pre-Market Report :
Pre-Market Report :
- US markets closed lower as there was some problem over Stimulus negotiations.
- Asian markets are following US markets.
- But right now they are off their lows.
- People need a reason to book profits after such a stellar bull run.
- Yesterday, we made another All-Time High.
- Reliance, HDFC Bank, Kotak Bank helped the markets.
- remember Reliance and HDFC Bank have 25% weightage in Nifty and DFC Bank and Kotak Bank have about 50% weightage in Bank Nifty.
- So yesterday it was purely Index Heavy play.
- Broder markets did not do so well.
- Today is the second weekly expiry in this series.
- Due to the huge surge in the markets, 13400, 13500 Call options unwinding took place.
- Huge OI added at 13650.
- Among the Puts, 13500 saw huge OI of nearly 30 lakhs.
- Nifty 13450, 13400 PEs also saw huge Open Interest.
- Nifty is likely to open between 13450 and 13500.
- In case, if markets fall further, these Option writers will have to run for cover, fuelling further fall.
- Usually, Wednesday trades are highly volatile.
- But yesterday there was not much volatility.
- So the Volatility may have been reserved for today's trade.
- Need to watch Reliance, HDFC Bank, and Kotak Bank closely for the cues.
- FIIs have bought for about Rs 3.5K crores yesterday.
- DIIs have sold for about 2.5K crores.
- That is the usual game nowadays.
- Any fall of more than 100 points in Nifty, it is time to sell Put options at 13000 and below.
- Nifty will find huge support between 13000 and 13100.
- Moreover, India VIX is high and premiums are decent.
- As markets have run up, too fast and too furious, profit booking can come at any time.
- Better to be cautious on the long side. However, the downside may be limited to 3 to 4%.
- Nifty may find good support at 13400.
- Resistance will be around 13600.
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