NIFTY:
It is all about Ram, islands on fire, Hanuman on Release and Ram reverts back on every one's prayer. The Maryadha Rama, the one and only Idol the whole life systems to surrender! Cosmic.
While we talk about these events, brings the role of Line and the line of Lakshmana Rekha.
That line is centered around recent low 21480 if it goes then we sure going towards 21000. Draw your ammunition and arrows to defend.
The dice is to cross, let's see if that unfolds today or tomorrow. With inflation data on 11 in US and China and ours on Friday. The dice is pushing to print an evening star, warning to near term bulls if not a reversal of long-term trend.
Yesterday demonstrated, we are back to the cues from overseas to react locally. We whittled mere red in the European market. If this gives inputs then we are here to break lower than otherwise.
Sufficiently capped now around 21650. (half point move of the whole day till after noon yesterday). As long this holds expect move below 21480 (that begs to add to the shorts) over with quick close above 21680.
For the day remain shorts, mid cap is wilting so many other places too.
NIFTYBANK
The news of Oil discovery is Godavari basin in 26 wells goes the headlines. For sure they are not discovered overnight. The work is long when search for the wells, more so oil wells. That augurs well in the long run though.
Warnings on Bank Profitability, impending inflation data. Stale longs, broader market corrective bias, draining of liquidity (bonds to equity is an excuse?) all pushing the pressure on this index.
The heavy weights drag than hold.
One move around low 47000 or 46900 is seen in this move, as we cracked ahead and fell much to the likes of the euphoric Tuesday which turned into turnaround Tuesday for the bears.
Simple shorts around the 47350-500 stops 47830 for 46980 looks reasonable to anticipate. Hold the mantra of Risk Reward always at hand.
The markets have reasonably discounted the inflation data hence reaction to the news is more important than the news!