Overview
In my last Nifty report on 25th Sep 2019. I told that Nifty will be patchy. It will not have clear direction and one should wait for couple of days before initiating any Bull trade.
If you read that article then you were saved by hype created by Analyst and Twitter warriors saying Nifty will have 10% rally. So in this article I will discuss how Nifty will behave in October series.
Nifty proved me right yet again
Yesterday I posted video on How you can analyze Options Open Interest analysis sheet on this website. As part of the Video I analyzed Nifty sheet and provided details..
While analyzing the sheet I clearly mentioned that Nifty have support at 11,400 and will see bounce back from that level. Below is the article link where you can see the video.
Nifty going forward
Nifty will be range bound. It will have positive and negative days with movement bounded by 11,300 and 11,700. It will respect 11,400 most of the times unless something very negative pushes the market.
Note it is earning session. So Nifty movement will be decided by Earnings. Infy is reporting the earnings on 11th Oct so that will be very crucial. Most of the Earnings the later in the month so you will see more action on later days of this expiry.
Bank Nifty going forward
Bank Nifty was down for more than 2% today. It is definitely bad news. But good news is that some quality Banks were not under performing. For example Kotak Bank was relatively strong. This will lend support to Bank Nifty.
Nifty Bank will play with in the range specified below. On the lower side it will be 28,500 and on the higher side it will be 29,500. So it will also be range bound.
HDFC Bank will report earnings on 22nd Oct. That will be major trigger for Bank Nifty. It will be followed by other bank results. Since results will come later in the month so news based action will be seen in first half of the month.
Conclusion
Note the Auto sales will be reported tomorrow. That would be major trigger for the market. As festive season has started and if sales are not good then you can see further down side in Auto shares. Most of the Auto shares have already suffered so you need to be careful before making a position.