April 23, 2021
Time: 8 am
Pre Market Report:
- US markets fell as there was a news report that said Capital Gain tax will be hiked for Super Rich people.
- It is a local issue.
- Asian markets are mixed.
- SGX Nifty is down by about 50 points.
- Yesterday, since the beginning, DIIs would have supported the markets.
- When everyone was expecting Nifty to fall towards 14000, Nifty shot up to 14400.
- For third day, DIIs have bought for more than what FIIs have sold.
- Also FIIs are selling less than previous day.
- Yesterday FII selling was less than Rs 1000 crore.
- Bank Nifty out performed.
- Particularly ICICI Bank saw short covering ahead of its results.
- ICICI BAnk is expected to declare good results tomorrow.
- Nifty took support around 14200 many times.
- So as long as Nifty is not breaking 14200, we can expect some consolidation or even some recovery if there is any good news from corona front.
- But as of now, there are no good news.
- Looking at open interest, Nifty is likely to trade violently between 14000 and 15000.
- Straddle highest open interest is at 14500.
- Reliance has not announced when it will declare results.
- If they announce, then Reliance may see some short covering, if the overall sentiment of the market is good.
- Always stocks will see some selling if price has gone up in the recent past, just before results and vice versa.
- Reliance has been trading between 1900 and 2100 for a long time.
- Markets will stabilise and recover if FIIs stop selling.
- But as of now there is no such sign.
- Bank Nifty is making more than 1000 pointt move on almost all days.
- Too volatile to handle.
- Even nIfty is making 200 to 300 points move.
- It is better not to trade in short term options.
- Expect volatility to continue at least until the end of this expiry
- Banking stocks will be in focus after dramatic recovery of 1200 points from low yesterday and ICICI Bank out performance.
- Nifty future may trade between 14200 and 14420.
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