STRONG GLOBAL CUES
Global cues strong, will act as bonus for India
US market ended at highs with huge intra-day rally
Indian market has ignored every negative global cue
Nifty set to cross the all-important trendline again today
Big question: Can the 18,000 mark be conclusively broken?
((SGX Nifty))

TRADE SETUP
First signs of FII shorts throwing in the towel
Index futures: FIIs cover shorts by almost 13,000 contracts
FII shorts down to 45,000 contracts, almost half of peak
FIIs still at 68% short, more covering is likely
Ex of IT, Indian markets are at all-time highs
Banks, Autos, FMCG, Cement, Infra all at new highs
Buy on dips in economy stocks is the only logical trade
IT rallies will be short lived but powerful at times
The only risk to market is if it keeps ignoring global risk-off
For day traders, 5 and 10 DEMA of Nifty crucial levels
Nifty’s 5 DEMA at 17,725 and 10 DEMA at 17,750

FII in Index Futures

Shorts down by over 20k contracts.

As highlighted in morning.

Good morning

FED UP OF FED?
Fed outcome tonight, 75 bps in the price
Mkt action suggests even 100 bps may not derail rally
Dollar Index and Bond yield indicate another risk off
SGX Nifty indicating a weak start, test of 20 DEMA

TRADE SETUP
As expected, big short covering by FIIs in Index futures
Index futures: FIIs reduce shorts by over 20,000 contracts
Index futures: FII shorts down to 25,000 contracts
FIIs now at 61% short vs 82% at start of the series
Yesterday’s low of 17,744 will be the first support
20 DMA and 20 DEMA both placed at 17,690
Risk-reward favourable for longs on a test of 17,690
Bank Nifty remains the better and stronger Index to trade
Bank Nifty’s support zone at 5 and 10 DEMA of 41,050-40,700
FII buying should keep large financials in uptrend

So far the morning low is right at yesterday's low and first suppor

If it holds, can see aggressive short covering.

Good morning. Stay tuned for trade setup

IS THIS POWELL’S VOLCKER MOMENT?
Fed at biggest tightening spree since Paul Volcker in 80s
Market’s fear: Did it underestimate number of rate hikes
Back home, market’s resilience getting tested
((SGX Nifty))

TRADE SETUP
Market might be going through cleaning excesses
Larger trend of “Buy the dips” intact till 17,240
For today, SGX Nifty low first reference point
Nifty set to open much below 20 DEMA of 17,700
50 DEMA of 17,340 seen as major support base
Intra-day recovery if any has to be led by Bank Nifty again
Bank Nifty’s first support: 10 DEMA of 40,800
Bank Nifty’s major support: 20 DEMA of 40,220
Market breadth for last few days has been weak
FII data indicates re-entry of shorts, may be tactical
Expiry today, shorts may have entered for today’s decline

Mkts turning a bit weak. Be cautious.

The Dollar-rupee move suggests some serious risk-off

Bank Nifty is trading below 10 DEMA for some time now. If it doesn't reclaim it, a test of 20 DEMA of 40,220 is possible

Let's see

The way its broken 20 DEMA is very negative.

Had warned about the turn yesterday

This is the main reason

Sorry could not post the morning setup today.