NIFTY and BANKNIFTY for 25th February

At this moment, Dow Jones Industrial Average (DJIA) is 922 points (3.18 %) down and NASDAQ IS 340 points (3.55%) down. European markets are all down by more than 3.5% each. As for our markets, Nifty today fell by 251 points (2.08 %) and Sensex went down by more than 800 points. This was 2nd highest single day fall in last one year (1st was after last year’s budget on 8th July) with 0 advances and all 50 declines in Nifty. In my active trading life I haven’t seen this figure of “0 Advances and 50 declines”. Markets are in great fear over corona virus outbreak- now spreading to middle east and European countries decisively. Iran reported more than 12 deaths officially whereas a report from IRNA (news agency) in city of Qom quoted a lawmaker pronouncing more than 50 deaths. South Korea and Italy are latest victims. Please check my video posted on youtube under channel name Market Movers India for slightly more exhaustive and analytical content. The markets will not be able to spring back quickly from this shock. At best they will remain flat. FIIs today were net sellers by 1161 Crs and DIIs were net buyers by 516 Crs. So whatever buying was there, it was in midcaps and small caps it seems. Option chain data shows heavy call OI build up meaning 11900 is tough resistance to scale. Frankly speaking, even 11850 should be decent resistance in this market. As for support, 11700 seems Ok for now since it also coincides with Nifty’s 200 DEMA (11,717). But I will certainly not be comfortable in buying nifty till it shows some strength. As for levels, Nifty levels are indicated on 15 min chart and in BANKNIFTY, no new levels are formed so stick to old levels for selling. Today’s high in Banknifty can also work as resistance if BNF reaches there. For buying BANKNIFTY at shown buying area in yesterday’s post, use strict stop loss since markets do not encourage buying at all.
All the best. Happy trading.