November 10, 2016

Market outlook

Daily charts
- trend is down on daily charts
- we had a fast/ strong reversal in 2 days
- have a doubt if this will sustain
- today, markets closed above 8500
- but close was near day's low
- option writers bullish that 8000 will not break in DEC
- why do they expect 8000 not to break? when we are already at 8500?
- Why not 'expecting support' at 8400 or 8200?
- so what is the market trying to tell us?


8 comments:

  1. with the big fall all supports till nifty 8000 also get broken so if now there is a fall ; nifty could resume its fall down to 8000 ?

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    Replies
    1. Let's see... close below 8500 is required.

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  2. rising with islands..so falling will be with islands..Any comment sir?

    ReplyDelete
    Replies
    1. A 30-50 point gap down opening is required... I don't see that happening.

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  3. Dear sir Banks constitute about 40% of Nifty weight.Due to demonetization they would attract huge low cost deposits which would have a significant effect on their profitability. so bank nifty would uplift the Index.

    ReplyDelete
    Replies
    1. I don't think so... the money people are depositing now will be withdrawn in few weeks.

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  4. - why do they expect 8000 not to break? when we are already at 8500?
    - Why not 'expecting support' at 8400 or 8200?
    - so what is the market trying to tell us?

    8000 was to be tested again......

    ReplyDelete
    Replies
    1. At 8500 if option writers do not expect 8000 to break, it means they are expecting a correction... this is what I am reading. If they 8200 not to break, then highest OI will be at 8200 put but this is not the case.

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