Yesterday high levels were not held and the candle pattern for the day was half upper shadow and half green body. The gap was held, though, so we live to fight another day. Today’s morning trade indicates a light green and therefore the considerations of yesterday (24900 and 24700 for the gap), continues to remain valid.
Nothing new out of the Zelensky-Trump meet either. There is some talk about a trilateral meeting down the road. Lets see.
So the focus may shift back local news and there the GST reforms will be dominant. Good news is that FII index shorts saw some covering (1.82L to 1.71L contracts) and this needs to continue for the rally attempt to become more meaningful.
What is also important is that Trump, who had threatened more sanctions against Russia if talks failed, has not announced anything. So, there is expectation that the additional 25% levy may be removed as well. Well Aug 27 is the deadline for that. If it happens, it would be a sentiment positive. FIIs were also seen as buyers in cash yesterday.
Call writing was present at 25000 already and it got added to yesterday. So, if NF stays above this level today, we may see some covering propel the index ahead.
Intraday Ichimoku cloud was crossed so short term trends have improved, largely owing to the gap of yesterday. Future cloud has also turned green. Daily signals continue to remain bearish yet. So more efforts required by bulls before the day dawns.