March 12, 2021
Time: 8 am
Pre Market Report:
Global cues are positive.
Asian markets are higher.
SGX Nifty indicating a 200 points gap up for Nifty.
Local Holidays like yesterday is always have this proble.
We will react for two days of good or bad Global cues.
I always say Bull market corrections are fast and furious.
Just two weeks before, the same Firday, Nifty fell more than 700 points and Bank Nifty fell more than 2000 points.
Just two weeks, fast forward, we are looking at the markets looking to break all time high.
Nasdaq was sold off 10% but equally shot up in just few days.
European Central Bank assured of lose monetary policy, vowed to buy more bonds.
US$1.9 Trillion stimulus bill signed by President.
US markets are all time high.
As I said in my post market report, for the last many months, first two weeks of the series, bull run followed by violent consolidation in the last two weeks.
Now in March series, we consolidated with huge violent moves, it looks like rally in the next two weeks.
Positionally, people have 15000 short straddle.
If Nifty crosses 15600-15700, these people have to run for cover.
If that happens, Nifty 16K is possible within this series.
Incidentally, Nifty 16000CE has the highest Open Interest from the beginning.
If you can remember, on first trading day, I suggested 14K PE nd 16K CE.
But this gap up by more than 200 points may come under selling pressure.
Usually big moves happen after opening flat or with some positive bias, will sustain better.
Usually huge gap ups will see at least one wave of selling pressure.
Let us see what happens today.
I tried to post "Post Market Report" on Wednesday, but could not succeed.
Air hostes insisted that I enter the aircraft immediately while I was recording my report, so had to stop in between.
Hope I bring the report today evening.
Nifty future may trade between 15320 and 15520.
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