Will Hindenburg Report Spoil Indian Stock Market Party?

Market to open flat to positive bias as USA markets have ended in green. US Fed meet appears to be a non event. However, Hindenburg, a US-based investment research firm has done lot of damage to Adani group stocks and it will eventually lead to a catastrophe fall in Indian markets. Hindenburg is likely to prove this fact that pen is mightier than the sword as it is a 4 year old company with 10 employees.

One need to keep hawkish eye on Hindenburg Report effect on Adani and banking stocks.

What an expiry. Surprised everyone with the early morning move. Feb is always an important month due to 2 reasons. Less number of trading days and the budget. So, any trend which develops after the budget can gain a lot of strength after it.

SgX shows a gap up of 140 points after the holiday which may not sustain. Friday after a monthly expiry is always the odd day out. 

Nifty. Support is placed at 17800 and resistance at 18050 and 18180. Should spend the day in this range.

BankNifty. The real culprit due to Adani fiasco. Closed at the support of 41600. Any break of 41500, and we can see another slide of 1500 points easily. So avoid banks. Resistance levels are high at 42400.

Trade carefully today as Hindenburg, a US-based investment research firm that specialises in activist short-selling, said on Wednesday that its two-year investigation revealed that Adani Group has "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades".

Trade in intraday with our bank nifty option tips and you are good to start making profit every day as we are generally out of the market by 10:30 AM with profit.