Sometimes operators (Big Institution) get themselves trapped in short position with market gap up openings. Today Indian stock market have opened with a huge gap up, Nifty Futures Opens at 10682, and made high of 10823, previous close was 10613. Banknifty Futures Opens at 21645 and went high 21940, previous close was 21396. And I think Banknifty might surpass 22000 levels intraday the way both the Indices is showing strength.
One should be cautious with the long position as FIIs has sold 1566 crore in Cash Market following by DIIs who offloaded 650 crore in Cash market segment. In Index futures FIIs have sold 1646 Crore following by sold Stock Futures of 1418 Crore. On second half of trading today bull should be cautious in long positions. Keep trailing stoploss to cut down loss if market see one round of sell off by big institutional.
So focus on buy on dips and one more thing after post Reliance AGM, there can increase more volatility on market. Keep eye on Nifty and Banknifty previous close which shouldn’t to be touched. Or else huge sell off and new day lows can be initiated on chart. As long as Banknifty is trading above 21500 is good for bull below that market will come on bear grip. Nifty Futures below 10730 can see huge profit booking and fresh short can be initiated.