Short Market Report 28.01.22

Short Market Report

Indices closed in red posting a convincing red candle as was estimated in previous market report. It has been a classic 1:30 PM FII selling leading to a minor short covering by put writers in bank nifty. There has been a bucket load of swing trades by market makers.

Option data is all over the place and is kind of spooky. The reason behind this is that no one really knows what movement will happen due to the upcoming budget on Tuesday. So, in short, a lot of hedging is going on in the indices.

Given this scenario, Monday is likely to be muted while Tuesday we can expect huge volatility which will continue at least till Wednesday.

For tomorrow, you can expect a green day and so far it seems that we can end this week in green unless some major stunts happen in budget.

Veteran analysts are divided in opinion. Some are heavily bullish and some are wildly bearish. So, it is better to watch live market and then decide on how to trade and what to trade.

Trading Range:
Bank Nifty 37000-38500
Nifty 16700-17300

Trading ideas: Far OTM option selling would be best suggested for this expiry.

Nifty
Conviction Neutral
Bias bullish

Bank NIfty
Conviction Bullish
Bias Bulish