NIFTY
&
BANKNIFTY
LONG
Well, there should be no surprises that there is a very high probability that we are going to see an UPSIDE Trending day for
NIFTY
,
BANKNIFTY
and most of the stocks in NSE given the stimulus package of $266 Billion (20 Lakh Crore - INR) declared by the Indian government last night. Since then, SGX Nifty rallied more than 4.5% and is currently trading close to 9400 level (At the time of this writing) after pull back. Today, is a good opportunity IMHO to go long. We had already started seeing positive effects of the stimulus package by the strong upside rally witnessed in the second half of yesterday's session (12 May 2020) after the news broke out. The up-move may be due to short coverings leaving the market with huge upside potential.
Trade with lower capital size and have wider SL and targets as today's session may be quite volatile.
Upper Circuit: There is a small possibility that Nifty may hit upper circuit, so keep an eye on that and exit if you see market approaching upper circuit level as we may see pull backs after hitting them as we had seen previously when the Nifty hit lower circuit.
Nifty Upper Circuit: ~10130
Options: Those who trade options may keep in mind that today is Wednesday and Theta decay effect would be high so holding long positions overnight may not be in your best interest but that is up-to you to decide.
Global News: As far as global news is concerned, there are no significant news as of now that can overshadow the effect of government's stimulus package, so the possibility of upside move currently does not seem to be out ruled by other global factors at least for today (but something to keep an eye on).
SHOT/SIDEWAYS
You may wonder why this section is there after today's long bias. Well, I won't try to short today's market but then it's my duty as a trader to keep all possibilities in mind before entering the trade. If we see the selling or sideways market that would be a surprise, but then market is supreme and we will have to reanalyse.
Daily RSI
BANKNIFTY: ~60 – Leaning Bullish
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