I had mentioned in my previous post made on Tuesday on how the option writers have a complete grip on market action and global cues not withstanding.
That post is here – http://www.vtrender.com/content/ahead-holiday-spx-preview
Even though the cash spx came close to a 30 point fall, the balance of positions made for expiry ensure that we have a flat open.
2 hours into the day so far, it is still the writers with existing positions calling the shots and no big moves have been seen so far.
Here's a chart of the Nifty and the bank Nifty overlaid with volumes and the 5 day and 20 day medians.
The yellow bar in the second pane and the yellow curve of the third represent the medians of a 5 day and 20 day structure respectively.
As can be seen the current volume is much less than the medians and not a sign of the longer time frame entering the market.
The bank Nifty chart above reflects the same.
Till you see an increase in volumes, do not take large bets on the markets.