So we broke important support yesterday. Weakness was clear in the background on charts as well as on FIIs money flow, and the anomaly on short on Index and long on stocks which everybody including me was following, was broken as stocks and index swinged downward with more than 100 points swing in Nifty Intra. FIIs sold 14.7 lacs of Nifty and open interest increased by around 16 lacs, clearly Retailers as well as FIIs were in sync this time.
Earlier days Gap of Nifty at 5250 levels remained open which indicates the rampant bearishness on the index. Clearly everybody including market experts were confused with the negative co-relation between index and stocks, but what can one do if charts of Index were bearish and at the same time stocks were giving wild swings. Clearly that's the charm of the market everybody wants to make quick buck no matter co-relation works or not and I was too not an exception, so got some stop losses hit on individual stock calls yesterday.
As we've broken out important support yesterday and there's literally no put builtup on downside that we can call support so we can this time go below 5000 in coming days unless any significant amount of put builtup shows up. Downside supports are:
5111 161% retracement
4970 262% retracement
One more important support is placed at 5030 at the TL. will be interesting to see if TL holds or not.
Review of Stock Calls of Yesterday:
Apart from IndiaBull real estate where price declined with fall in open interest indicating short builtup, other stocks tried to stay firm but finally long unwinding is seen.
Apollo Tyres: I was expecting a bounce from the current levels but as Nifty cracked 5200 stock broke out too. Open Interest cut yesterday was 4.1% with stock plunging by 3.1 % indicating clearly that Longs were unwinded.
India Bulls: A small built up of just .3% in open interest built up with 5% cut in stock, still indicating that market is not in a hurry to short this stock, but additions can go on as Index clashes.
HDIL: Same story with 2.3% cut in open interest stock plunged to 4.1%, Longs of a day before yesterday were unwinded but not fully thats fishy, so again hopes of Reality sector got buried with Nifty.
Bombay Dyeing: One of the few interesting stock where the quantum of fall is always restricted to mostly 3%, fell yesterday to 1.6% and is now very near to crucial 560 base.
Escorts: That's the only stock which closed positive .7% at 178.75 and didn't hit positional stops of 174/170 but still exited from all stocks, will take new position above 180. Looking at this stock I some time wonder that this stock must get some place in Nifty, quite a strong stock on charts indeed.
Hope you liked it.
As we've broken out important support yesterday and there's literally no put builtup on downside that we can call support so we can this time go below 5000 in coming days unless any significant amount of put builtup shows up. Downside supports are:
5111 161% retracement
4970 262% retracement
One more important support is placed at 5030 at the TL. will be interesting to see if TL holds or not.
Review of Stock Calls of Yesterday:
Apart from IndiaBull real estate where price declined with fall in open interest indicating short builtup, other stocks tried to stay firm but finally long unwinding is seen.
Apollo Tyres: I was expecting a bounce from the current levels but as Nifty cracked 5200 stock broke out too. Open Interest cut yesterday was 4.1% with stock plunging by 3.1 % indicating clearly that Longs were unwinded.
India Bulls: A small built up of just .3% in open interest built up with 5% cut in stock, still indicating that market is not in a hurry to short this stock, but additions can go on as Index clashes.
HDIL: Same story with 2.3% cut in open interest stock plunged to 4.1%, Longs of a day before yesterday were unwinded but not fully thats fishy, so again hopes of Reality sector got buried with Nifty.
Bombay Dyeing: One of the few interesting stock where the quantum of fall is always restricted to mostly 3%, fell yesterday to 1.6% and is now very near to crucial 560 base.
Escorts: That's the only stock which closed positive .7% at 178.75 and didn't hit positional stops of 174/170 but still exited from all stocks, will take new position above 180. Looking at this stock I some time wonder that this stock must get some place in Nifty, quite a strong stock on charts indeed.
Hope you liked it.
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