Market Melting - Nifty Future
Melting
Good Morning and Wish You a Happy Trading Session
….
After a relief rally of (233 points) from 10857 to 11090 on 01 October
Nifty Future started to meltdown sharply. On 05 October Nifty Future fall was
very destructive.
The surprised move on rates of Monetary Policy Committee of Reserve
Bank of India, consistence fall in INR was the provider of cause/strength of
Friday’s down move.
Fall of 12.73% (1501 points fall) within 24 trading days clearly
indicating Market already stepped into a BEAR phase.
If Nifty Future anyhow closes below 9960 then the correction will
turn to the black picture of 2008 – the great recession.
On 5th October Foreign Institutional Investors have sold
8238.01 Cr. against buy of 4867.87 Cr. And net trade value was -3370.14 Cr.
From 01 October FIIs have net sold -11222.38 Cr. this is an alarming issue.
Although net trade value of Domestic Institutional Investors is
1902.07 Cr. but this buy failed to resist the fall.
At Friday’s session India VIX jumped to 20.4825, it is increasing continually.
The index is at 85.12% of its 52 week high (24.0350). It is clearly indicating a
bear phase.
Most active CE of 5th October was 11000, the total
contracts added 44, 98,275. This is indicating a relief rally may pull the
market for the time being.
And most active PUT strike was 10500 and open interest add 36,
09,975.
Key Support-Resistance level of Nifty Future
Below 10270 next crucial supports are 10218. At this fall Nifty
Future may melt down to 10028.
Before taking support at lower band a bounce back of 100 to 110
points not is ruled out. Vital resistance of the day is 10376.
Today’s Overview:
From any support level a small bounce back is on card. But don’t jump
for long term view. Any bounce back of 100-110 points is good opportunity for
going short.
