NIFTY for 11th December

Nifty had yet another major fall today after yesterday’s Doji candle and made a strong red candle with lower high, lower low and lower close with 14 advances and 36 declines. FIIs were net sellers by only 367 Crs and DIIs were net buyers by only 338 Crs. So how did this massive fall of 80 points come around? I have talked in great detail about this in the video posted on youtube under channel Market Movers India, so please check that. My take is that since FIIs are known to buy frontline stocks, they had earlier bought Nifty stocks. Now with markets near life time high and economic indicators painting dismal picture, they are selling those stocks which have costly valuations and trying to buy those which are having cheaper valuations. In other words, they are going for value picks and booking profits on highly valued frontline or Nifty stocks. Hence you see Nifty falling but not very high Selling figures. To buttress this, let me tell you that yesterday FIIs were Net buyers in all segments- Equity (730 Crs), index futures (15 Crs) and stock futures (667 Crs) and yet we did not see a strong green candle.
Option chain does not show any credible support for Nifty. There is no Put writing and no strike price with very strong total OI that can be taken as support for tomorrow. However, on charts, logical support of 11800 is offering some hope. So, one can buy there if at all one wants to take a chance. Otherwise, Selling areas are marked for shorting Nifty.
All the best. Happy trading.