Trade Log NIFTY May 5
In my yesterdays review, I made the following points
1. This fall now wont be as unidirectional and steep as the March fall.
2. There will be choppiness with negative bias.
3. 8300 is not short term bottom.
4. The first bounce if any tomorrow will likely to fail.
Point 3 and 4 were confirmed by today's price action.
I have the following observations about today's price action
1. VIX did not dropped significantly. This means this continuation did not surprise or created fear.
2. The sell off after 1.30 was steep. And there is no climax action today.
3. Bank NIFTY under performed severely. 4. Breadth was not too bad considering the points lost, but banks contributed to the losses.
4. Option writers consider 9400 -9500 unbreakable by May 7.
All this means
1. Trend is confirmed as negative.
2. This drop in now entering the choppiness zone of last rise, 9000 - 9150, This is likely to offer first support if any.
For tomorrow,
1. Today NIFTY did opened with positive global clues but could not sustain. I expect some gap down opening if there are even mildly negative news.
2. I do not have clear idea, but my hunch is tomorrow again will be a down day with mostly some support discovery around 9050-9150 region.
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