Markets are getting volatile day by day. It is getting very difficult to judge the movement of the markets. I expected markets to fall further after black Monday, but Tuesday proved me wrong as nifty recovered. Banknifty recovered 1000 points.
IT is under pressure as they have rallied a bit too much and the good results are in the price. Yesterday Infy came out with numbers and they were good. They have given a buyback price of 1750. But Infy ADR is down by 5%.
As I told you before, markets have rallied a bit too much and all the good news is factored in. This earnings season, the results will be good but the stock prices will fall and even the index will fall.
Another interesting technical analysis is Dow, S&P 500, Nasdaq, FTSE, DAX are all in the overbought region. The RSI of all these is above 70. Usually, there will be a correction when RSI is around 70-80. Will the correction be severe?? I don't know. Time will answer that. Obviously, when US markets fall, you cant expect our markets to rally. So I am expecting 14k soon, probably even before it touched 15000 again. If I am correct, this earning season may provide the trigger for that. Again, fingers crossed.
Covid cases are hitting new records day by day. The fear has reduced but the pandemic is not over. A friend of mine is severe covid positive and he had to go around 5-6 hospitals for a bed in Bangalore. I can imagine the condition in Mumbai where cases are high. So be careful and stay safe without taking it lightly.
Maharashtra has issued stricter norms for 2 weeks. The street feared a lockdown which did not happen. So that's why there was a recovery in the markets and the global cues are also supporting the markets.
The US, European markets are hitting new highs every day.
Today we are opening after a holiday, weekly expiry, Infosys and IT will be under pressure. So expect volatility in today's market.
INTERNATIONAL MARKETS
- All US and Europe markets are making new highs every day. The US bond yield is also around 1.6. The US fed is also giving comments that the economy is in the path of recovery.
- Today SGX is suggesting a gap-up of around 150 points. Let's see if any selling comes at the open.
- FII sold for 700cr and DII bought for 250cr.
- Nifty has the highest OI at 15000ce and 14000pe. This might be due to the margin reduction. You should be considering the next immediate highest OI.
- So, Nifty has the highest OI at 14700ce and 14300pe.
- Banknifty has the highest OI at 32500ce and 31000pe
- Nifty max pain is at 14500 and that of banknifty is at 31500.
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