Today we know reason why option traders were adding 6000 PUTs even if market was declining. Iran news was out after market hours on Friday. Always keep an eye on option table during last week, it mostly gives correct idea about future direction. All those who kept on selling PUTs had made money. Today they are adding 6100 PUTs and will make sure tomorrow market stays much above 6100.
FIIs were buying all along. US dollar index was going down. All these indicators were pointing towards up-move. However, as a general trend, Indian markets are over reacting nowadays. I had never expected such a big up move today and I guess nor did many.
If market goes above 6200 tomorrow, there could be further upside otherwise market will consolidate in this (6100-6150) region till expiry. Perhaps euphoria of Iran news will stay for two more days. Normally if market had to correct, it would have corrected after news broke, it did not happen. NIFTY waited for sometime and followed flag pattern. So I think clearly there is some more upside.
Double top pattern on NIFTY chart is invalidated and it is now more than 100% certain that NIFTY will not close below 6000 before expiry.
No new trades for tomorrow.
Disclaimer: This blog does not take any responsibility of your profit/loss
FIIs were buying all along. US dollar index was going down. All these indicators were pointing towards up-move. However, as a general trend, Indian markets are over reacting nowadays. I had never expected such a big up move today and I guess nor did many.
If market goes above 6200 tomorrow, there could be further upside otherwise market will consolidate in this (6100-6150) region till expiry. Perhaps euphoria of Iran news will stay for two more days. Normally if market had to correct, it would have corrected after news broke, it did not happen. NIFTY waited for sometime and followed flag pattern. So I think clearly there is some more upside.
Double top pattern on NIFTY chart is invalidated and it is now more than 100% certain that NIFTY will not close below 6000 before expiry.
No new trades for tomorrow.
Disclaimer: This blog does not take any responsibility of your profit/loss
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