NIFTY for 23rd March

Two factors will weigh heavy on markets tomorrow when it opens- One, DJIA (Dow Jones Industrial Average) closed 4.55 % down at Friday’s close- again a significant fall after Wednesday’s and Thursday’s slightly muted activity. Two, Italy posted highest single day number of deaths (793) in world yesterday – much higher than that of China throughout its crisis period. This will be perceived as overall Europe’s status or the way it is coping up with crisis. These factors might pull Nifty down. However, one positive factor will lend its weight too- SEBI’s tightening of norms to cut down short positions will lead to some short covering but I suspect it will be in some stocks only since MWPL above 50% is seen in less than 10 stocks as of now. This might prop Nifty up. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. FII sales are continuing but the figures are consistently reducing day by day- they too have nothing left to sell it seems as far as Equity is concerned. They are buying in Index and stock futures though, which means they are pretty positive that a recovery is in sight within three months at the most. DIIs are buying continuously. Option chain shows the trading range between 8500 – 9000 on the basis of total OI but fresh writing is just not there since IVs are so high that traders are just not buying contracts. Currently INDIA VIX is at 67 – first reduction on Friday in 2 weeks! On daily chart, Nifty is in oversold region (RSI -25.19). Swings could be wide tomorrow during opening times so take trade after Nifty stabilizes. A buying area and a selling area is marked on 15 min chart for tomorrow. Use SL for sure.
All the best. Happy trading.