Trade Log NIFTY May 7
In my yesterday's market review, I had said
1. Tomorrow is expiry day. I wont take tomorrows action, especially sharp move if any as indication of further trend.
2. Mostly indecisive day today, so we have to see in which direction the NIFTY moves further. I do not have any bias going in tomorrow.
3. But if I have to build some view, then I think it'll be uneventful expiry (9300 +- 50) tomorrow, if there is no news flow tonight.
Point 3, around uneventful expiry turned to be correct. The expiry happened around 9200 with lot of chopping moves.
I have the following observations about today's price action
1. Market was very choppy and formed indecisive candle, which is inside candle as well.
2. The action around 9200 -9230, It was a narrow range action - no trade possible.
3. Bank NIFTY also traded in very narrow range.
4. Breadth was bad. 11 Advances and 29 declines.
4. Option writers again going in with 9000 as lower limit and then 9300 upwards calls were written.
All this means
1. Trend is negative. and market paused today.
2. Sometime soon, may be tomorrow, there will be expansion of the range. On downside till 9000. And for upside, first NIFTY needs to build above 9350.
For tomorrow,
1. I think NIFTY may open gap down or little negative and move towards 9000.
2. Until we close above 9300, it is better to stay on short side.
3. Gap up opening is possible only when there is some positive global news. In that case, need to wait for close above 9350.
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