Nifty Plummets In Decade's Worst Market Crash | NDTV Profit - video Dailymotion

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00:00Bhavin Mehta, now VP Derivative Strategy of Daulat Capital joins in with a technical and

00:05derivative strategy.

00:06Bhavin, it has been a bit of an anti-climax, especially after what we saw yesterday and

00:11how markets have opened this morning.

00:14Extremely volatile, very clear downward buys, the breadth is weak, Bank Nifty is trading

00:19lower.

00:206th of June expiry, the PCR was anyway looking not so conducive in that sense.

00:26What is the strategy to trade the Nifty?

00:28Would it require bravery to initiate a fresh position on the index right now?

00:35Yeah, good morning.

00:37Definitely today, participants were already anticipating a volatility trade, specifically

00:43yesterday as well as today.

00:45Yesterday, we have seen a sharp up move.

00:47Today, markets have given up most of the gains, closed that gap, moved lower.

00:52What I am seeing is that today till end of day, you will get clarity on the trend.

01:00However, as long as we are holding a lower level of 20 to 100, 20 to 200, my sense is

01:07that we continue to remain in a tight band between 22,100 to 200 on the downside.

01:13And on upside, we are looking at somewhere around 23,100 as a kind of a crucial resistance

01:19zone.

01:20We need to sustain above this level for a fresh momentum.

01:23But if we break down below 22,100 to 200 kind of a range, the selling could be sharp.

01:29Now, in this particular scenario, what we are particularly looking at is how volatility

01:34index behaves.

01:35And currently, it is closer to around 25 kind of level.

01:39If we see a spike, probably towards 30, 32, we may see a sharp sell-off in markets.

01:47But till that time, markets taking a directional call would be difficult in trade today.

01:54So no trades, but let's just try and help people who've taken trades.

01:59If you were long on the market on Friday, or rather Monday, what do you do right now?

02:04Do you take your losses?

02:06I'm guessing because you'd have no choice.

02:08There's no profit being made on any of those Monday trades.

02:10Or do you wait it out?

02:12How would you approach it?

02:13And if you were short, would you take profits?

02:15If you were an FI, who's now clearly laughing their way to the bank, guys.

02:21Yeah, so even from FI perspective, if you look at the kind of trading position they

02:25had taken, there was a lot of volatility from the positioning perspective.

02:29So they covered a good amount of short yesterday.

02:32Prior to that two days, they created a good amount of shorts.

02:35So there was a lot of volatility even from the positioning perspective.

02:40However, my sense is that as long as FI still continue to remain short, there is a high

02:47probability that they will look to book out in the range of 22,100, 200 unless there is

02:53a kind of a black swan event wherein current government may not come with a good amount

02:59of votes.

03:00So my sense is that going forward, the levels will be very crucial.

03:05Currently, it is at 22,500 in trade today.

03:09If that is broken once again, we can see a move closer to 22,100 to 200 on downside

03:16and breakdown below that will be a clear sell call on the directional front.

03:21However, till the time this range continues, my sense is we will go into that narrow consolidation

03:28zone between 20 to 200 to 23,100.

03:32That is the view that we are looking at.

03:36Thanks, Bhavin.

03:36Thanks for joining in today and giving us your thoughts.

03:38We'll spare you giving your stock ideas.

03:40This is a difficult market to really be giving ideas.

03:42So let's avoid that.

Nifty Plummets In Decade's Worst Market Crash | NDTV Profit

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