Short Market Report 21.02.22

[Forwarded from Daeron Trading]
Short Market Report

Huge Volatility was there in markets as we had expected but the weird thing that happened was that nifty closed in red but banknifty managed to close in green. Nifty is trading below all major moving averages but above 200 DEMA. Banknfty managed to take good support at 50 DEMA. Chart wise the worrying factor is that NIfty is trading below the recent long term channel and has managed to confirm it as a resistance. To add to the misery, it closed below the reference level of 17230 which many analyst have been watching.

Geopolitical factors are controlling markets but today banknifty was following levels beautifully.

Oil prices are soaring again which may have negative impact. US markets are closed today so no cues from that side but SGX nifty is trading in red.

Option data suggests that trading range in nifty is 17000-17500 and banknifty is 37000-38000

What to expect tomorrow? Rangebound movement can be expected unless major news causes a breakout/breakdown. 37851 is acting as crucial pivot in case of banknifty. Huge OI has been added at 37500 and 17000 which will act as crucial support for individual indices

What to trade? As we had discussed before, selling otm options would be the best strategy as we had discussed and selling 37000PE and 38500CE is working fine.

Nifty & Banknifty

Bias Bearish
Conviction neutral