As we write, SgX is down by 176 points. Such a big gap down is not good at all. It takes away the chance of any intraday trade. If we open around the levels of SgX, we will open near the 200 DMA and should see some reversal from here.
Macro economic factors are weak with disturbing news from UK and Europe. Today RBI starts 2 day policy meet where we can see the result tomorrow morning. Today Rupee should be closely watched to understand volatility. Further drop in price will reduce the possibility of a reversal.
Nifty. Resistance is clearly placed at 17130 and support at 16800.
BankNifty. 37900 should be held but can drop to 37500. Incase of reversal bank nifty can go till 39650.
Derivative. Data is better. But since it is rollover week, we focus on outstanding numbers for the month. Put longs have increased above 4 lacs with short covering and rollovers in stock futures.
