Market Analysis for May 11, 2022
Post Market Report & Nifty Chart Analysis
Today there was bullish aggression right at the open. From the open till 2:45 PM Bulls were firmly in control in the Intraday Timeframe. However, in the final 45 minutes of the day selling came in, and the Bears regained control. We need to remember that the Bears are in control in the higher timeframes (still in a downtrend in the Daily Timeframe).
Over the last 2 days, Nifty Futures has witnessed selling at the 16400 zone. Price is failing to close above 16300. Also, the price is still wandering below the key level of 16448. As long as the price is closing below 16448 in Nifty Futures, we will remain Bearish in the daily timeframe.
Nifty May Futures is trading at a discount now. Over the last 3 days, the Futures premium has been falling.
IndiaVIX (Volatility Index) is inching up slowly and is now at 22.3
The fall in Reliance continues. A week back it was at 2850. Now it is at 2474. These 5 companies listed below took away 85 points from Nifty. That is almost 0.5%.
Banknifty did well aided by Private Banks. Financial Services & FMCG were the other indices in green.
FIIs sold for ₹3960 crores and DIIs bought for ₹2958 Crores in the cash market.
FIIs added more shorts on the Index today. They also reduce their long positions in the Stock Derivatives segment. FIIs continue to remain Bearish. They continue to sell on every rise.
PUTs were closed at 16000 today for the coming week’s expiry. This indicates Bearishness. Participants have added PUTs at 15500 and15800. They were not confident to sell additional PUTs at 16000. However, 16000 still has the highest OI when it comes to PUTs. Participants are just holding on.
However, the monthly expiry is painting a different story. PUTs have been added at 16000 and 16300. So, the participants are expecting some weakness in the market with respect to this expiry, but are expecting the market to bounce back after that.
Global Markets are mixed. Europe is in green. But, the US market is in the red.
Let’s now move on to the charts & price action.
Positional Trading Analysis for this week (May 09 to 13, 2022)
Bearish as long as Nifty Futures closes below 16448 in the Daily Chart. Support on the downside being 16354, 16234, 16159 (Marked in Green).
Bullish only if the Nifty Futures closes above 16647 in the Daily Chart. Resistance on the upside being 16844, 16982, 17095 . (Marked in Red).
We will maintain a Neutral view if Nifty Futures trades between 16448 & 16647 (between the Blue levels).
The above analysis is for Positional Trading (1 Day Chart) and for this week only. For Intraday Analysis (5 minutes Chart) of Nifty, Banknifty & Stocks, and other useful tools, please check the Finvezto Toolkit. Toolkit enables independent research and helps you make wise trading & investing decisions.
Disclaimer: The analysis is for educational & informational purposes only. Please consult your financial advisor before taking any trading/investing decisions.