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EOD 17315/+197/+1.16%
EOD 36348/+330/+0.92%
EOD 24.07/+2.23©
FII DII data
SGX Nifty 18380
21-3 Overnight
SGX Nifty moved up but in a narrow range.
22-3/0830h
Asian markets were mildly positive and SGX Nifty was flat so we will have to see how it goes. Since FIIs were net sellers yesterday, choppiness and some amount of negativity maybe there for a while.
0908h
Nifty pre-open at 17120
Bank Nifty pre-open at 35975
As expected, sell-off started
India VIX up 1% closer to 25
Only Reliance (NS:), TCS (NS:), and Infosys (NS:) in the green and holding Nifty better than Bank Nifty.
Steep fall of 1.45% in Bank Nifty as it breached 35500 as well.
HDFC Bank (NS:), State Bank Of India (NS:), and ICICI Bank (NS:) are the main draggers.
1055h
India VIX crossed 25
Till around 1130h, Nifty has made the AM low of 17006, Bank Nifty has correspondingly made a low of 35421, and India VIX made a high of 25.16. The US futures are mildly negative and the Asian markets are mixed.
1200h
By this time, Nifty made a high of 17075+ and then fell 60 points around the strike of noon. This is the typical Average Trade Price triggered selling pressure which works like a charm on days like today.
Now, the indices are attempting to recover but selling pressure is preventing them from doing so in a convincing manner. The only silver lining I can see is that the US futures are almost near the flat-level and the Asian markets are also approaching towards non-negative terrain and this maybe a handy cue for the indices to stage a recovery.
1300h
And that’s what seems to have happened as between 1230-1300h, Nifty went up by 130 points to turn positive and Bank Nifty was up by 475 points, but still in the red.
1330h & till EOD
And then the momentum continued as Asia closed in strong positive and Europe trading in the green and remained so till our EOD. The US futures also turned around and what was seen as “gloom & doom” till 1229h, made a sharp reverse turn and Nifty crossed 17200 & Bank Nifty crossed 36200 in the ferocious move that followed.
And then the indices consolidated for a while before taking one final leap to end above 17300 for Nifty & 36300 for Bank Nifty. With the sharp recovery, the India VIX came back below 25 and on an EOD basis, dropped by 2%+ which is a good sign.
In Conclusion
The key is for the indices to hold levels above 17200 & 36000 for the week on a daily closing basis. Only then can we say that the fear has subsided as in that case India VIX may touch ~ 21 levels.
At 1620h, SGX Nifty is flat so too early to comment any further.
Video link:
https://youtu.be/HcdY_HWQB0Q
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