Consolidation Ahead ? : Market Analysis :March 8 2021

• Previous  week was recovery 600 point move up from the February month end dip and then gave back  450 downside last two day thanks to US yield rise for corrections.

• Market seems to be consolidating with Bollinger bands contracting on both indices.

• Momentum rise got rejected on daily two times 

• Nifty may retest the previous swing low of 14500 levels once gain.

• Bank nifty still could not break above a window gap above 35600-35760 and momentum slipped below equilibrium and managed to climb back 

• if it cannot hold 34500 then it could mean major fall till next far away support at 33000 levels

• Only above 15275 will there be another bullishness seen on nifty on a very short term 

• The ADX trend lines are about to cross over the DM to bearishness but with not with strength

• Weekly and month are still comfortably bullish zones for both indices open interest

• Both indices have bearish buildup on future open interest while options also shows the same with major resistance at 15500 while support are seen at 14500 and 14000 levels. 

• So it could be like charts suggested hovering between 15500 and 14500 that we may see unless major event make it worse  either side.

• VIX which has cooled off to22 levels shot up to 25 level again indicating vitality and choppiness to continue. Option premiums are very high due
  
   to volatility and stop loss getting hit for intraday traders could be seen as in last few weeks

• Overall markets may be consolidating before the next up move is my view while it is not clear how long it may consolidate. Neutral strategies in options with defined risk could be a way for position trades in short terms while intraday trades could be made with strict stop losses watching momentum in the direction of trend.

• Coming week being shorter with a holiday could give theta gain more for option writers

• FII selling  continuously last week is worry for bulls .NBFCs joining Banks with IT also joining led to last weeks fall.US Yield and Dollar index strengthening along with current bearish adds up to the worry.
• Metals, Energy ,Reality, Infrastructure and Public sectors are in bullish zones on charts