The damage done, let’s look up now

I do not recall when I last saw Nifty closing a whopping 524 points below last session’s close. The situation about which I was apprehensive and writing since last 2-3 sessions did unfold today. The fear of strict lockdown writ large on market participants and as I had expected ( and written too) of FIIs they sold heavily. So what now for tomorrow?
Here we take help of charts. On daily chart, both Nifty and Banknifty closed below its lower band of Bollinger band. In fact, banknifty started its downward journey just above the lower band. In such circumstances, there is always a pull- back, albeit for only one day, but it is a strong probability tomorrow. In late afternoon, news came in that Sputnik V has been given the emergency use approval. 524 point fall in Nifty and 1656 point fall in Banknifty has already factored in the lockdown. So even if tomorrow Maharashtra govt does announce lockdown don’t expect it to cast any effect on markets. So all in all, I expect a green candle tomorrow. How much will it rise? For how many days it will continue? I don’t know. Nobody knows. So tomorrow, in my opinion, one should not be short on indices; if possible go long. Again, today too there are no clear cut levels going long in either indices.

Disclaimer: I am long on Nifty and Banknifty.