Dull conditions prevailed yesterday and we had small range day in indices. There doesn’t seem to be any specific news flow overnight to move the markets much and this morning and hence order flows today would probably dictate the moves today. This may spill into stock moves rather than index moves. No point in splitting hairs about index moves today and option shorts would probably do better. I had mentioned as much in the intraday update yesterday. Call shorts dominate but yesterday change in OI was more in short Puts, so seems like bulls are putting up some defense, around 25500-400 area. So, dips into those zones, if seen, could probably be used to make intra day buys. Calls continued to add some more at the already existing large position at 25600 Ce and therefore we seem set for a small range of 25500-600 with some minor overshoot of these levels. ATM IV is down further to 11.69% and that also signals dullness and also a lack nervousness about the market status.

Bank Nifty however is trading better and I have been advocating favoring this index for trading. Can remain long with a stop at 57500. Or short some lower puts if you prefer to go that way. If this index makes tracks, then the Nifty may also get a bit of a life and if along with, some other sectors perk up and 25600 get crossed, then the ride ought to resume.
The next turn date is around 7-8th so maybe some more consolidation to continue?
PCR is at 0.88 so, kind of neutral. Only RBL Bank in futures ban perhaps on the back of some stake sale to a Dubai bank. So, no bias emerging from anywhere.

Some positive noises on the US-India tariff talks can contribute to improving sentiment. But a week left for this matter so we should not jump the gun. In other news, Auto sales numbers were normal-ish except for Maruti where sales ticked down some so it could face a bit of a flak.

In sectors, the market is engaged in sector rotation, even down to intra day levels! This makes stock selection difficult unless you are playing the bigger trends. This may continue. Reliance continues to fare well and if there are dips on the back of some rotation, this will offer buy opportunities for swing traders. IT may be under pressure as individual charts seem a bit weak and mixed in with pressure from Nasdaq and Tesla problems. So that area may be avoided.