Short Market Report 03.02.22
Short Market Report
Waterfall drop happened in the indices especially in the second half of the trading session. There was a discrepancy yesterday where charts were showing bearishness but FnO data was suggesting long build up. But charts happen to rule the day. Things were bearish from the start and both indices closed in red. This doesn't mean that trading was easy. Bank nifty had a huge pull back and formed a new day high in the middle of the day a lot of people had to close the short positions. Problem worsened when everyone started taking long position at day high. This was a bad move as 39500 was a big resistance to take out and there was every possibility that things would reverse from there on. Then it started falling again and hit stoplosses on the long positions. Now, there you need luck.
What to expect tomorrow? Both indices have short build up and there is a high possibility that we would see a red day tomorrow. Gap opening may happen and more on the lower side.
Trading Ideas: 39000 PE and 17700 PE can be bought if we see good down move
Nifty & Bank Nifty
Conviction & Bias bearish
NB: Be clear that it's just a minor retracement. There will be a bounce back in a day or two.
Waterfall drop happened in the indices especially in the second half of the trading session. There was a discrepancy yesterday where charts were showing bearishness but FnO data was suggesting long build up. But charts happen to rule the day. Things were bearish from the start and both indices closed in red. This doesn't mean that trading was easy. Bank nifty had a huge pull back and formed a new day high in the middle of the day a lot of people had to close the short positions. Problem worsened when everyone started taking long position at day high. This was a bad move as 39500 was a big resistance to take out and there was every possibility that things would reverse from there on. Then it started falling again and hit stoplosses on the long positions. Now, there you need luck.
What to expect tomorrow? Both indices have short build up and there is a high possibility that we would see a red day tomorrow. Gap opening may happen and more on the lower side.
Trading Ideas: 39000 PE and 17700 PE can be bought if we see good down move
Nifty & Bank Nifty
Conviction & Bias bearish
NB: Be clear that it's just a minor retracement. There will be a bounce back in a day or two.
Note
Bearish day. Both indices closed in Red
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