EquityCompound2

31st Mar'2021 (Evening) Markets today opened under pressure and then could never recover. As mentioned yesterday, Bank Nifty is the weaker index and also lost more today. Profit booking after yesterday's stellar move and also weak global cues due to some anxiety over President Bidens speech today kept the pressure on. Concern however is that there was again some big selling in Cash by FII, coupled with extremely bearish stance in the F&O space. In fact their position in Index futures is completely reverse from Friday. Markets are actually giving no sense of direction. I feel only positional adjustments and Index management is going on. Need to wait for a direction to emerge. Indices however are weak and real strength will only come after the levels mentioned earlier. Dollar Index and Yields made some steep climbs and also led to the anxiety in the markets. Today some cooling off is seen. US markets are also trading in green ahead of Presidents speech. Lets see if this senti...

26th Mar'2021 (Evening) Markets on Friday opened higher and was mostly range bound for the whole day. While Nifty closed almost at the opening level, bank Nifty closed with some losses. Nifty made a Doji candle while Bank Nifty made a bearish candle on the daily chart. FII did not sell big, DII actually bought close to around 1700 Cr in the cash market. This was a second strong buying figure from the DII over the last three days. The strength was pretty good as the market breadth was strong and some short covering was seen on both the indices. A follow up of this is critical for the indices to gain strength.  Over weekend, US closed strong on Friday and the global indices were positive on Monday, when we were closed. This would leave a catch up for the Nifty and Bank Nifty. Our indices would most probably open in green tomorrow. Key is to watch if this gap up is sustained or sold out. I would mostly expect the gap up to be sold out. The low for tomorrow is then important. A breach ...

24th Mar'2021 (Evening) The markets today were extremely nervous on the rising Covid cases and this nervousness led to profit booking. Banking stocks were the prime sells as these are the ones that had run up so much. Fear lock down and related consequences were pushing the selling further and further. Huge shorts have built up at 14700, 14800 and 14900 on Nifty. Bank Nifty also has a huge short built up at 34000 onwards. FII sold for 1900 Cr and this was a substantial selling in some time. While DII bought for 600Cr, it was not enough. Yields eased a bit but then Yields and Dollar Index have been rising together lately. This is not good for EM. Almost all of Asia was under pressure for this.  A risk averse mood is set in and the sentiment could be muted for this and waits for a trigger. Traders are looking for safe investments. After a stellar runup, Domestic institutions and investors would also be in mood of booking profits for financial year end. Tomorrow's closing could be...

23rd Mar'2021 (Evening) The markets saw some short covering today. The movement was drive by financials and Banking stocks. Bond auction cancellation was one reason and Supreme court verdict another for this move. Nifty went above 14824 but could not breach on a closing basis. Bank Nifty also went above 34350 but closed below it. These levels are offering stiff resistance at least as of now. For the upwards journey to continue, these levels have to eb taken off tomorrow. For Bank Nifty the next critical level is 34650 and then 35000.  FII have net sold today, though a bit less. The buying from FII would be critical for further movement from here. Bond yields have eased a bit, however, Dollar Index has swelled. US markets are trading flat as of now. A positive close would be instrumental for our markets tomorrow. US is actually nervous of expected statements from FED. Rising Covid cases in Europe and also in domestic markets is keeping the sentiment muted. So actually a war is on be...

22nd Mar'2021 (Evening) The markets opened on weak global cues today. The Turkish Lira led to some turbulence and Nikkei opened 2% down. Maintained this through the day and kept the Asian markets in pressure. Indian Markets started seeing selling as they opened, only to pick some support in the second half. However, the momentum did not pick up and while Nifty closed almost flat, Bank Nifty closed weak.  Nifty close was above its 50DEMA and BankNifty closing actually breached its 50DEMA.  FII also sold today for 750 Cr, while DII bought, though not as much as FII sold.  Yields have slightly eased and Dollar Index is also marginally low. A further correction in this and and a positive close in US may lift the sentiment for us tomorrow. Nifty seems to have picked up support, though it has to close above 14824 for a continued momentum.  Bank Nifty is at a critical support now and has to remain above its Friday low of 33361. A fall below this may lead Bank Nifty towards ...