Market is unwilling to accept any negative news and this means there is strength in the market.
Today morning there was news about scam in banking, video was shown on channels, but market neglected it.
There was not so good inflation data, but still market withdrew some positive conclusion about rate cut from these inflation numbers and neglected outcome.
Everything is being looked at as if all problems before our nation will be solved after 25/50 basis point rate cut. Every junior economist would understand if CRR/Repo is cut, bank will find difficult to get deposits. Even today's inflation rate is (much) more than bank interest after tax. Situation will become worst if there is further rate cut. This simple logic every banker knows.
Maybe real reason could be something different. Government wants to dis-invest and falling market perhaps not good for the government for dis-investment strategies.
This is merely trading market, not good for swing trades/investors.
Keep track on FII activities. Many times one can smell something. FII sold huge in index future first time in this month, though they continued buying in cash segment.
Don't be surprised if market goes to 5850 level tomorrow. It can very well happen. Bank scam will come again on surface. And once news is out about rate cut on Tuesday, from next day, there will be normal trading, those smart money investors who bought on rumors will start selling on news. They have all OTM puts bought to cover their losses if they could not exit on time, perhaps retail investor can not do that strategy due to lack of funds.
In spite of all this if at all market crosses 5975 then it can quickly go to 6050/6070 before RBI announcement on Tuesday. Book profit in long NIFTY option call then. And Sell more 6200 CALLs for April expiry.
Reliance:
It had rallied from 800 to 860 in past few days, In remaining 10 trading days Reliance will find difficult to cross 900.
Sell Relaince 900 between @ 7.5-8.5.
PFC: It did not go down below 188/189. I am still holding maybe it will give one more chance to book profit.
Today morning there was news about scam in banking, video was shown on channels, but market neglected it.
There was not so good inflation data, but still market withdrew some positive conclusion about rate cut from these inflation numbers and neglected outcome.
Everything is being looked at as if all problems before our nation will be solved after 25/50 basis point rate cut. Every junior economist would understand if CRR/Repo is cut, bank will find difficult to get deposits. Even today's inflation rate is (much) more than bank interest after tax. Situation will become worst if there is further rate cut. This simple logic every banker knows.
Maybe real reason could be something different. Government wants to dis-invest and falling market perhaps not good for the government for dis-investment strategies.
This is merely trading market, not good for swing trades/investors.
Keep track on FII activities. Many times one can smell something. FII sold huge in index future first time in this month, though they continued buying in cash segment.
Don't be surprised if market goes to 5850 level tomorrow. It can very well happen. Bank scam will come again on surface. And once news is out about rate cut on Tuesday, from next day, there will be normal trading, those smart money investors who bought on rumors will start selling on news. They have all OTM puts bought to cover their losses if they could not exit on time, perhaps retail investor can not do that strategy due to lack of funds.
In spite of all this if at all market crosses 5975 then it can quickly go to 6050/6070 before RBI announcement on Tuesday. Book profit in long NIFTY option call then. And Sell more 6200 CALLs for April expiry.
Reliance:
It had rallied from 800 to 860 in past few days, In remaining 10 trading days Reliance will find difficult to cross 900.
Sell Relaince 900 between @ 7.5-8.5.
PFC: It did not go down below 188/189. I am still holding maybe it will give one more chance to book profit.
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