MARKET PICTURE BEFORE ELECTION RESULTS MARCH 2017.

LOTS OF IF AND BUTS GOING ON IN THE MEDIA AND FOR POLITICAL PARTIES TODAYS NIGHT IS GOING TO BE LIKE A NIGHTMARE FOR SOME OF THE POLITICAL PARTICIPANTS.
HERE I AM NOT TRYING TO PREDICT THE ELECTION RESULTS BUT AS STOCK MARKETS IS ALWAYS ACT LIKE A MIRROR FOR THE MAJOR EVENTS, THATS WHAT I AM WRITING OVER HERE.
LETS TAKE A LOOK AT DERIVATIVE PICTURE OF THE MARKET.
OPEN INTEREST BUILD UP IN INCREASING ORDER WITH VOLUMES GROWTH IS A SIGNIFICANT SIGN OF SHORT BUILD UP IN THE INDEX FUTURES AS PRICES ARE UNABLE TO MOVE OR TO MAKE NEW MOMENTUM HIGHS EVEN A STIFF RESISTANCE IS AT 9000 LEVELS. CONTINUOUS SUPPLY IS OBSERVED ON THIS LEVEL.ALSO ON 2 ND AND 3RD MARCH LIQUIDATION OF LONGS WAS A PERFECT SIGN OF PROFIT BOOKING.
NOW LETS DISCUSS BANKNIFTY FUTURES : BANKNIFTY FUTURES CONTINUOUSLY SHOWING LIQUIDATION OF OPEN POSITIONS THROUGHOUT THE MARCH SERIES WHICH IS TOO A SIGNIFICANT SIGN THAT THE MAJORITY OF THE TRADERS ARE NO LONGER WANTS TO CARRY THEIR LONGS IN THE MARKET , WHICH TOO SIGNFIES THAT BJP WIN AS A MAJOR PARTY IN THE U.P. AND OTHER STATES IS QUIET IN SECURE.
NOW LETS PUT SOME LIGHT ON PUT CALL RATIO OF THE MAJOR INDEX NIFTY AND BANKNIFTY BOTH.
PUT CALL RATIO IS ALSO BELOW ONE IN BOTH INDICES WHICH IS AN INDICATION OF WEAK MARKET SENTIMENTS.
TECHNICALLY MARKET AT ITS TOPS AND CLOSING OF ANOTHER FINANCIAL YEAR CYCLE IS ON THE CARDS. SO PROFIT TAKING CAN ALSO DRAG THE MARKETS.
AS I ALWAYS GIVE LOTS OF EMPHASIS ON FOREIGN INSTITUITIONAL DATA , SO I HAVE OBSERVED THEM THROUGHOUT THE FEB SERIES THEY WERE THE MAJOR BUYERS IN CASH SEGMENT WHICH INDICATES A LONG TERM BULLISH BIAS FOR THE MARKET. BUT AFETR OBSERVING THEIR FUTURES MARKET DATA I HAVE NOTICED THAT THEY ARE THE NET SELLERS IN THE INDEX.
ANY MAKET DECLINES DUE TO THE OUTCOME OF THE EVENT CAN BE TAKEN AS A BUYING IN OPPORTUNITY TO ACCUMULATE AND INVEST.
SO CONCLUSIVELY MARKET DATA AND TRADERS POSITION IN THE DERIVATIVE SEGMENT IS NOT FAVOURING THE BJP AS A MAJOR PARTY WIN.
THIS IS MY PERSONAL ANALYSIS PLEASE DONT TAKE IT IN OTHER PERSPECTIVE.
THANK YOU.

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