The beauty of expiry momentum is that the speed increases with the downfall. Once the opposite side (bulls) started loosing, bears kept on tightening the grip and we saw much lower levels. The question you should ask is why does it happen on monthly expiries?
The reason is simple - rollovers. If the markets are falling, rollovers happen on the short side giving an edge to the bears in the next month. The second reason is - after the high losses, bulls are carefull and with less Capital. But it does not mean the tables can't be turned.
Let's see what happens in the festive month of October.
Nifty. Weekly charts are weak but not enough to take us down the barrel. For me the most important level will be 16555. This has to be held for the bulls to play evenly. On the upside, 17250 has to cross for decent move. But the caveat is - Global markets are the weakest in the last 3 years.
BankNifty. Today is RBI policy and and some wild move is expected. I would be surprised if the rate increases by more than 50 basis points. I feel dome more downside is left for banks. Resistance is placed at 38340 and support at 37150 and then 36700.
New month so no derivative data
The reason is simple - rollovers. If the markets are falling, rollovers happen on the short side giving an edge to the bears in the next month. The second reason is - after the high losses, bulls are carefull and with less Capital. But it does not mean the tables can't be turned.
Let's see what happens in the festive month of October.
Nifty. Weekly charts are weak but not enough to take us down the barrel. For me the most important level will be 16555. This has to be held for the bulls to play evenly. On the upside, 17250 has to cross for decent move. But the caveat is - Global markets are the weakest in the last 3 years.
BankNifty. Today is RBI policy and and some wild move is expected. I would be surprised if the rate increases by more than 50 basis points. I feel dome more downside is left for banks. Resistance is placed at 38340 and support at 37150 and then 36700.
New month so no derivative data
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