Nifty index opened positive and extended its gains towards 11572 mark but it failed to hold the same and drifted towards 11450 zones. It negated its formation of higher lows after 8 trading sessions which implies that some pause is visible at higher levels. It formed a Bearish Candle on daily scale while Doji Candle on weekly scale
Now till it holds below 11550 zones weakness could be seen towards 11400 then 11333 zone while hurdle is seen at 11500 then 11550 zones
Max Put OI is at 11000 then 11200 strike while Max Call OI is at 11600 then 11500 strike. Put writing is seen at 11600 then 11450 strike while Meaningful Call writing is seen at 11600 then 11500 strike. Option band signifies a trading range in between 11300 to 11600 zones
India VIX moved up by 1.53% at 16.27 levels. Volatility fell down from highs but slightly moved from its base of 14 zones so some volatile cues could be seen
Bank Nifty made a new life time high of 30008 but witnessed profit booking at higher levels and drifted sharply towards 29508 zones. It finally negated its higher lows formation after 14 trading sessions and formed Bearish Engulfing candle on daily scale which indicates that supply is visible at higher levels
Now till it holds below 29888 zones it can extend its losses towards 29250 then 29000 zones while major hurdle is seen at 30000
Longs in Coal India, NTPC, Indigo and Just Dial
Shorts in Motherson Sumi, BEL, KSCL and ICICI Pru
Bank nifty and Nifty negated the formation of higher lows of last 14 and 8 days respectively. Global market also trading weaker due to concerns regarding slowdown in US..Profit Booking Expected.
Actionable – Buy Jubilant Foods.
Investment – Buy Axis Bank.
SGX NIFTY: 11411 (-60)
NIFTY 50: 11457
Sensex : 38164
DOW: -460 (Stocks fell as inverted yield curve stokes recession fears. (Spread between 3 month Treasury bill and 10-year note went negative on Friday for the first time in more than a decade)
Gold: $ 1320 per ounce
Crude: $ 66.43 per barrel
10 year US bond rate: 2.43 percent
10 year Indian Bond rate: 7.33 percent
RBI MPC to Meet Six Times in 2019-20; 1st meet April 2 to 4.
Morgan Stanley on Housing Finance Sector- Remain cautious on the sector due structural issues.
Derivative View – VIX closed at 16.3. Put writing is seen at 11450 then 11400 strike while Call writing is seen at 11600 then 11500 strike. Option band signifies trading range in between 11300 to 11600 zone.