Bank Nifty Fires Up and Changes the Sentiment for now as 16000 & 33000 Reclaimed

Bank Nifty Fires Up and Changes the Sentiment for now as 16000 & 33000 Reclaimed

EOD 16013/+150/+0.95%
EOD 33158/286/+0.87%
FII DII data not yet available
SGX Nifty at 1730h shows +48 at 15988 which doesn’t seem to be correct

This post has been written as the market session progressed.

From a relieving reading of +136 points to a reading of -90 points, SGX Nifty has traveled a lot while we were resting.

I am not sure if the index movements would entirely be global cues dependent as it may also react to the exit polls. 

Today once again the indices opened gap-down and after dilly-dallying, they made the AM high and then fell sharply and this time they broke the low of yesterday ahead of noon. This is the typical behavior when indices try to rally as the FIIs simply grab such opportunities to sell further and make hay.

To me the current market moves also test the decision-making abilities of traders in particular as making money in such situations where volatility is intense with fast and wide spreads is not an easy task irrespective of which side one is trading.

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And today is yet another day when reading and the ground realities are different for if there was no incremental fear, why would there be such wild swings and more particularly every rise getting sold into.

And as the clock came closer to open, the VIX rose and turned positive with the indices creating new lows. Once FTSE opened, there was initial nervousness and then within an hour’s time, Nifty staged 200+ points & Bank Nifty 600+ points recovery most likely fuelled by short-covering as the global cues turned non-negative.

Even though the relief rally for the day was appeared to be quite strong, VIX remained during this period around 29 which is not a good sign. Possibly the fear now is whether the higher levels would be held on to when the markets open tomorrow.

TCS (NS:) & Infosys (NS:) are up the highest in terms of % increase followed by ICICI Bank (NS:). These three stocks helped change the sentiments for the PM session. 

In my view, the FIIs may have sold less than 4000 Crores as only then can we witness such a strong recovery. 

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Nifty Support 15500-700
Bank Nifty Support 31800-32200

The most important thing is what transpires on the Russia-Ukraine front in the next 24-48 hours and that in my view would decide the direction of the market. Now, that would also coincide with the State elections.

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