I have started actively trading and investing in the Equities and Futures and Options markets. This is a simple journal of what I do and why. The format will be simple.
I will jot down my points during the start of the day and make some plans.
During the day, (when the market opens), I will execute them.
After the market ends, I will note down my observations and see where we stand and how far the strategies worked and why.
Disclaimer: This is my personal journey. I am not a financial advisor of any sort, so copying my trades or scrips is NOT recommended.
After rallying almost 1200 points, Nifty finally showed some weakness and and has come down from the highs of 17950 to 17600. That is a big fall.
I see a few major problems:
- US bond yields are getting higher. Source
- There is an ongoing energy crisis ongoing. Coal is in short supply, gas stations are running dry.
- Monthly expiry was on September 30. This led to a lot of positions closing. Ok. This was a minor point.
- FIIs have sold drastically. They have pulled out almost 1900 crores on Thursday while DIIs have bought about 90 crores.
- Evergrande crisis
- Delta variant is still a threat in the US
- US Markets are also significantly lower than yesterday
- NIFTY has been falling for 3 days straight. RSI has eased off. I don't care much for technical indicators though. Human psychology works differently.
- Massive fall was observed in NIFTY and BANKNIFTY yesterday and that was monthly expiry. Trends suggest there could be a rally today.
- Retail buying remains strong in India.
- Festive season is approaching and October to November has traditionally been good for Indian markets.
Let us see the situation in NIFTY
Let us check BANKNIFTY
Here as well, I don't see anything easing for the Banks in the short term. The upper resistance stands around 37900. I don't think it will go there today.