NIFTY for 5th March

Today’s fall and then recovery, both were due to domestic concerns arising out of corona virus outbreak in India. Now we are at stage where world matters less than Indian cases. China is reporting signs of recovery in economic activity. There is stability in numbers (of patients and deaths) coming out of China. However, what caused the recovery of around 169 points in Nifty was maybe the prompt and proactive action by government. At the time of writing this post, all the world markets are in green- Dow futures, European markets are well up by more than 1%. Today, FIIs sold shares worth 878 Crs and DIIs bought them worth 764 Crs. So FIIs are in the mode of trading whereas DIIs are cherry picking. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content.To tell honestly, tomorrow being expiry, our markets will in general be volatile. Add to that the anxiety caused if there is some negative or strong positive news over corona virus. The markets can have a run in any direction tomorrow. If the staus quo is maintained, our markets are showing strength. Option chain also is not showing any great build up due to wide range of activity. So one should trade with stop loss or use little quantity. On daily chart, Nifty is at lower band of Bollinger band, is at RSI of 30.69 and is in weekly demand zone- all indicate that Nifty is going to go up if left by itself. Due to today’s late recovery, a Buying area got shaped up which I have marked on 15 min chart. So buy if Nifty reaches there with SL and Sell at indicated Selling area if Nifty rises till 11400 as indicated, again with SL. Trade safe tomorrow.
All the best. Happy trading.