Nifty responded negatively to the Bihar election results (declared on sunday). Sentimental & emotional traders/investors strongly reacted to the news followed by sharp intraday recovery in the market and India VIX ends with strong decline right from the beginning of the market open. However there is no improvement in the indicator sentiment as it closed negative on Monday and followed the same on Tuesday as well with VIX moving down. It shows there is no enough panic in the market yet and the sentiment is likely to continue.
Sentimental Update after 9th November (Monday) – 3.00p.m
Sentimental Gap Closed in NF and BNF. But still EOD Sentiment remains negative. May be bottom is not done yet!
— Marketcalls (@marketcalls_) November 9, 2015
Tweet on Nov 10th about Declining India VIX
No one is in greed or fear when market down 1.5%. Vix too down 2.65%. Only naked option players getting hurt. pic.twitter.com/WB28WauzaN
— Marketcalls (@marketcalls_) November 10, 2015
Post diwali Nifty futures gapped down again and closed lower with increasing VIX as panic starts kicking in. Fridays Sentimental Gap left open and the sentiment ends extremely negative. Further gap down can be expected on coming monday as the Global markets sentiment is negative on friday closing.
If monday bigger the gap down more odds that we can see intraday recovery can be seen as the sentimental gap trading rules kick in. It should be remembered that so far three sentimental gaps are left in this series. as shown in the above image as yellow candlesticks. Gap Levels 8257, 8057, 7812
Banknifty closed positive on last friday and outperformed nifty this week with a sideways action. Indicator Sentiment also turned positive. Higher odds that shorterm uptrend in progress as long as sentiment remains positive.
Overall outlook is positive in the shorter run followed by negative trend in the medium term.
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