Short Market Report 17.02.22

Short Market Report

Crazy volatile expiry is what happened and market was reacting to every possible news. Gong forward into the next expiry, things look quite unpredictable at the moment owing to the influence of global geopolitical scenario.

Charts of Nifty and banknifty are quite different even though both formed a solid red candle. Nifty is still trading within the channel but banknifty failed to creep inside and infact tested the channel bottom as resistance. Banknifty has formed a head and shoulders pattern with a neck line around 36587 which should be our reference level.

Global markets are trading in red. Crude oil up move seems to loose momentum on the upside but this can change in the blink of an eye as commodities react more to global scenario.

Option data suggests that range for nifty is 17500-17000 and for banknifty is 38000-37000.

What to expect tomorrow? Nifty looks quite strong compared to banknifty. So nifty might trade sideways whereas things likely to be bearish in case of banknifty.

What to trade? Intraday volatility has become too much to handle even for seasoned traders. So positional option selling can be done.

For the next expiry, consider selling 17500 CE and above in nifty and 38000CE and above in banknifty. Better to hold positionally. Avoid option buying.

I wouldn't be comfortable selling puts as I am not sure if the markets have bottomed out.

Nifty
Bias Bearish
Conviction Neutral

Banknifty
Bias Bearish
Conviction Bearish