Monday, August 22, 2016

Nifty: wait'n'watch game may end soon

Thought for the day
"I am going to try to pay attention to the spring. I am going to look around at all the flowers, and look up at the hectic trees. I am going to close my eyes and listen."
Anne Lamott (American, 1954)
Word for the day
Opacus (adj)
(of a cloud) dense enough to obscure the sun or moon.
Malice towards none
Olympics are over.
Let's go back to Cricket now.
First random thought this morning
Last week when I called on a landline in Delhi and heard the "the person you called is busy on the other line" message first in Punjabi, I realized Punjabi might have become first language of Delhi, without me knowing it. Nothing wrong in it, but it's just that no one bothered to inform me.
On the other hand PM has directed removal of 200 odd NRI supporters of Khalistan from the list of people who are barred from entering Indian shores. Again nothing wrong in it. But pardoning "traitors" without answering the debate on frequent misuse of the law relating to sedition seems odd.
We all know elections in Punjab are due and promise to be fierce one!

Nifty: wait'n'watch game may end soon

In the July series of derivative contracts Nifty closed at 8666.30, the same as the closing last Friday.
In the intervening three week period we had most of the quarterly results, GST, RBI policy, FOMC minutes, BoE Policy, Olympics, etc. done.
In this period of consolidation, Nifty has gained significant technical strength and looks all set to move higher.
In my view it is the Currently it is the reluctance of the participants and not the resistance that is stopping Nifty from moving up - Longs are reluctant to sell or add up; Shorts are reluctant to double up or book loss.
Difficult to say what will make participants more confident and take aggressive positions, but technical indicators are suggesting that this game of wait'n'watch is coming to a close in next couple of weeks.
In the meantime, Nifty has a strong support at 8490 and a resistance in 8864-8888 range. Bank Nifty has no credible resistance till 20600 mark.
(Nifty chart for derivative expiries since 2001)
 
 

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