Late recovery in US market after a dull down day as aggressive rate cut fear has subsided a bit.
US 10 years bond yield is consolidating near top.
Oil prices down for two days in a row, a good news for importers like India. This is mainly due to the easing up of Russia Ukraine turmoil.
Gold price has tested the breakout level and showing further upmove.
India news/concerns:
On 16th Feb, Indian market showed late sell off or profit booking. This happened from supply zones of respective charts of Nifty and Banknifty and was well anticipated, in general.
In F&O space, retailers have turned bullish against FII and Pro who are showing more bearishness in their stances.
FII again around 1800 crore on 16-Feb and DII consumed half of it, obviously supported by retail and HNI.
Note that FII selling in cash but buying in stock future. This shows that their purpose is never to bring the market down but they know that whatever they sell, retailers/DII will absorb that and thereby taking some of the stocks higher and so, take advantage from there also.
Technical:
On 16-Feb, Nifty took a strong resistance in the area of 17450-17500. Obviously, market now has a minor support at 17260.
US future is showing subdued signs of stability on morning of 17-Feb.
SGX Nifty closed the night before with some gains after closing of Indian market but India market is expected to open flattish or with a small gain.
Nifty option chain suggests, good support at 17300 and 17200 followed by major support at 17000. On the higher side, initial resistance at 17300 but major resistance at 17400 and 17500. So, 17300 seems to be an agreeable level for expiry but obviously, it will be a roller coaster ride during the day, even if it turns out to be so.
Expectation:
Market may open flattish and showing signs of initial up move and then can consolidate at higher level for some time. Finally, it is expected to take a bearish turn to test the support at 17260/17160/17050. On the upside, almost no chance of breaking the high of 16-Feb but that region can be tested once more at the best. It can go upto 17375 before turning bearish for the day.
In 4 hour chart, we took support from lower trendline and then resistance near the upper trendline. So, rest of the week will be interesting to check for a breakdown or breakout.
