Yesterday was a brutal day in the markets. Nifty fell 600 points and then recover almost 200 points to close. Banknifty fell more than 1400 points and recovered around 400 points. In my last weekly inner circle meet I did say that there is a reverse cup and sauser formation in the nifty charts and we may goto 16500 by this month. I did not expect that we would go so fast. 


There was slight support from pharma but that did not help the markets in any form. I don't have to tell you what all fell when nifty fell 600 points. Everything was in red. It looks like the banks are very weak. Retailers thought that they can take the markets without FII. Now FII is showing that they are still the game changers in this game.

The Omicron variant is a dominant variant in the US where it was 3% of the cases a week before and is now 75% of the cases. The problem was not just the virus. Now Europe has started implementing new restrictions which can slow the economy. A lot of industries like hospitality, aviation, hotels etc were seeing some recovery with the hope that the covid era was over, but this variant is not giving any signs of that.

Today maymyindia will be listed. Let's see how the IPO will perform in the downtrend market. It looks like the IPO frenzy market will continue. I have decided not to apply for any new IPO's from now unless I come across a very very good company.

Now, 17k is a very very important resistance. Any close above that with follow-through will be considered as a time to buy. Till then it's a sell on rally markets only.

Today you will see some recovery as there was a great shock in the market. Don't consider that the dip is bought and the rally will continue. It may or it may not. Prima facie it looks like the downtrend is more likely to continue.

India vix is almost 19 now.

Cryptocurrency bill is not to be taken in this winter session of this parliament as they need more time to learn what this thing is. 


MY TRADES

  1. I was just an observer yesterday. I did not take any trades and was simply watching the free fall. I was pretty confident that there would be some recovery in the second half.
  2. I was sitting with a wonderful profit till yesterday and yesterday's fall wiped almost all the profit and now I am almost at the flat line. But still, I have good room for doing adjustments. 
  3. Closing profitable trades were not an option yesterday as the vix shot up and the margins also shot up. Closing few trades would release only a small amount of margin which cannot be used for doing adjustment.
INTERNATIONAL MARKETS
  1. The US markets are also had a similar move. It opened badly and then recovered slightly in the end. Dow fell 600+ points and recovered 200 points
  2. Europe closed in red as there is fresh new cases and restriction in Germany, Netherland etc.
  3. Today the Asina markets are in the green. SGX is suggesting a 150 point gap.
FII AND DII
  1. They have decided to sell no matter what. Yesterday FII sold for 3500+cr and DII bought for 2700+cr
CRUDE AND $
  1. Crude is at $72
  2. $ is at Rs 75.78



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