March 4, 2015

Market outlook

- huge selloff in nifty as markets form a large outside bar
- selloff happens on 'good news' - surprise RBI rate cut
- last 3 days hanging man hinting at correction
- difficulty seen in holding above 9000
- broader trend is still up and will reverse on close below 8660 spot
- expect trendline support around 8800 levels
- highest open interest is at 9200-9000 call (almost same) followed by 8500-8800 put
- drop inVIX indicating no fear... note that VIX has lost more than 20-25% after the budget

EOD charts


Intraday charts - short trades are shown on break of intraday supports... excellent day.








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