EquityCompound2

26th April' 2022 (Evening)  --  | Written at 11.00 PM | With US markets making a swift pull back yesterday, Our markets opened to strong global cues. After opening gap up and then consolidating there for the day, Indices made a smart move in the last half hour and attempted a breakout, closing at the day highs. Amongst the global ruckus going on, whether this attempt will sustain, is difficult to comment. In general, I feel our markets are strong and in long term, I have absolutely no concerns. Let us look at the levels first : Now observing closely at the levels above, we see that the closing of both Nifty and Bank Nifty has been above the yesterday's resistance and the supports at lower time frames have also inched upwards. This is obvious if we study the candles made on charts of different time frames. So, generally the markets are strong, concern is a rising Dollar Index and volatility driven from US specifically. S&P VIX is now above 31 and poses a strong risk to glob...

25th April' 2022 (Evening)  --  | Written at 11.00 PM | The pressure built up by the heavy selling in US on Friday, kept a lid on the global markets today. Asia was unanimously red and Europe also closed in red.  Our markets turned out to be resilient and held their supports for the day. A positive sign as i see it. Nifty held its support at 16800 and Bank Nifty in fact recovered from its lows and closed in green. A standout amongst the ruckus today. As expected and mentioned in my notes yesterday, ICICI Bank results helped clear haze and gave confidence to investors in Banking stocks. After the initial anxiety, almost all major banks closed in green today. Lets look at the levels before i give comments further  So after holding the supports today, there is a hope that the markets may make a come back to its Friday close levels tomorrow. This possibility is higher on Bank Nifty. As Bank Nifty seems to be stronger on the charts. The news and sentiment due to ICICI Ban...

22nd April' 2022 (Evening)   --   | Written on 24th April' 2022 at 10.00 PM | Interesting week and day it was. Last week Nifty made a Doji candle, indicating some uncertainty of direction ahead. Bank Nifty on the other hand made a clear bearish candle on the weekly chart. On the daily chart though, both Nifty and Bank Nifty made bearish candles. The two time frame indicate a bearish trend with some support emerging at 16800 on Nifty and 35925 on Bank Nifty.  Now on the other hand US markets closed absurdly low. Dow Jones lost 981 points (2.81%) and Nasdaq lost 335 points (2.55%).  Both Nasdaq and Dow are now standing at very important supports. A breach of these levels could trigger much bigger pain for the global markets. Let us look at the Levels of our markets, before discussing further : Concerns originating from US on rate rise and a more hawkish approach by FED has been giving jitters to the markets globally. On Friday, US markets lost heavily and the...

 19th April' 2022 (Evening)  --  | Written at 11.00 PM | What a day it was. After a consolidation with a positive bias for the whole day, the indices just collapsed in the last 45min or so. A sudden selling across the board was seen as if there is no another day. Particularly there was no reason for this selling, at least nothing that I could honestly think of. Except that probably a series of stop losses got triggered once the index kind of fell to 17050 levels. Or maybe a sudden pressure felt due to the news coming in from the war and US futures turning red from a green start in the morning. As mentioned yesterday, the markets may give sharp swings on either side, else i really do not see a clear direction to the markets as yet. Nifty closed after a quick rebound from its support at 16800, however it could not close above 17000 which was an important support for now. Bank Nifty on the other hand closed at 36341 which is just below its support at 36425.  Important t...

18th April' 2022 (Evening)  --  | Written at 10.30 PM | Two sectors Bank Nifty and IT turned the tables upside down today. A day of ruckus created by these two sectors ended with Nifty losing 302 points and Bank Nifty losing 734 points. Driven by poor results of HDFC Bank and Infosys, both the sectors were battered today. Nifty IT lost 4.6% and Bank Nifty lost 2%. Both the sectors put together have more than 50% weightage in Nifty.  After the recent swing high driven by the merger news, the HDFC twins are lower than where they started. Both Nifty and Bank Nifty made bearish candles after a gap down opening. Though the candle of Nifty is more like a Doji candle as it recovered the intraday losses.  Nifty made a low of 17067, which is just above its support at 17000. So, if this level is held tomorrow, we may see a recovery rally till maybe 17400-17450.  I feel that todays shorting was driven by a knee jerk reaction to Banking and IT results. Powered by a global s...

1st April' '2022 (Evening)  --  | Written on 3rd April' 2022 at 6.30 pm | The start of April series was on an offensive on Friday. With Nifty taking down 17500 and Bank Nifty taking down 36850 levels. I felt and tweeted on Friday that Nifty is heading towards 17650 and Bank Nifty would probably take down 36850. As mentioned, Nifty closed above 17650 and Bank Nifty actually made higher gains and closed at 37148. The indices saw a heavy short covering with a total reduction of 94000 in the open interest of Index futures. Nifty lost around 23.5% and Bank Nifty saw a reduction of 37.5% in the combined open Interest. The levels at which the market is standing now is close its next resistance levels. Nifty level was 17650 and it closed just above it. Bank Nifty level was 37600 and it closed short of it after making an intraday high of 36242.  The next target of Nifty is 17800 and Bank Nifty is 37800. It is highly possible that this may come up in this week itself. While a steep...