Trade Log NIFTY May 6

6 במאי 2020

Yesterday, I had said

1. Today NIFTY did opened with positive global clues but could not sustain. I expect some gap down opening if there are even mildly negative news.
2. I do not have clear idea, but my hunch is tomorrow again will be a down day with mostly some support discovery around 9050-9150 region.

Overall, I think point 2 was observed. The support was discovered in the region of 9100-9150. Now We have to see how long this holds.

I have the following observations about today's price action

1. VIX dropped 5.41% for just 0.75% rise in NIFTY. Market was choppy and formed indecisive candle.
2. The second sell off of the day after 1:30, found higher support around 9190.
3. Bank NIFTY outperformed.
4. Breadth was Ok. 37 Advances and 13 declines.
4. Option writers undecided at level 9300 and considers 9600 as upper limit. 9100 as lower limit for tomorrow and coming week.

All this means
1. Trend is still negative, but there could be a pause and consolidation. That means some reversals on intra-day charts.
2. We have to consider the 9100-9200 region as the support now. This support will further confirmed if we get a close above 9340 tomorrow. And resistance of 9340 is confirmed if it closes below 9190.

For tomorrow,
1. Tomorrow is expiry day. I wont take tomorrows action, especially sharp move if any as indication of further trend.
2. Mostly indecisive day today, so we have to see in which direction the NIFTY moves further. I do not have any bias going in tomorrow.
3. But if I have to build some view, then I think it'll be uneventful expiry (9300 +- 50) tomorrow, if there is no news flow tonight.