Market is going up without any reason. Hope of stable Government and projects kick-off by Modi Government should bring prosperity in India according to FIIs.
So FIIs are buying in huge quantity everyday, and to add to it, yesterday it seems lot of buying even by retail investors who had left-out feeling in this rally! In no scale of imagination 90 point up-side yesterday could be justified. I must admit, I was caught at totally wrong end in this rally and trading account is in dark red!
Traders are neglecting Crimea issue, El-nino effect on monsoon, possibility of adverse election outcome (historically traders got it wrong, there is study published how investors/traders are always under-prepared with plan B of election outcome) and fundamentals of Indian economic situation.
Asian markets were up yesterday and it triggered upward hope rally in NIFTY, today Asian markets are down substantially but NIFTY might find some other reason to continue the rally.
There are several numbers thrown for resistances so far and NIFTY cleared them all in a style, now 6630-6640 must be very strong resistance so in case of eventuality, square-off 6400/6450/6500 CALLs of this month expiry and sell same CALLs of next month expiry.
Yesterday lot of unwinding of 6400/6500 CALLs and it is almost certain that in this month expiry NIFTY will stay above 6500 if not 6450. CALL premium of this month is increasing and PUT premium of next month is very high and also increasing. So traders are unsure for growth in next month and moght be buying PUTs. In view of this analysis selling CALLs of 6600 for next month could be the safest strategy for the moment.
Reliance:
Buy Reliance 900 PUT around 8-9.
Disclaimer: This blog does not take any responsibility of your profit/loss
So FIIs are buying in huge quantity everyday, and to add to it, yesterday it seems lot of buying even by retail investors who had left-out feeling in this rally! In no scale of imagination 90 point up-side yesterday could be justified. I must admit, I was caught at totally wrong end in this rally and trading account is in dark red!
Traders are neglecting Crimea issue, El-nino effect on monsoon, possibility of adverse election outcome (historically traders got it wrong, there is study published how investors/traders are always under-prepared with plan B of election outcome) and fundamentals of Indian economic situation.
Asian markets were up yesterday and it triggered upward hope rally in NIFTY, today Asian markets are down substantially but NIFTY might find some other reason to continue the rally.
There are several numbers thrown for resistances so far and NIFTY cleared them all in a style, now 6630-6640 must be very strong resistance so in case of eventuality, square-off 6400/6450/6500 CALLs of this month expiry and sell same CALLs of next month expiry.
Yesterday lot of unwinding of 6400/6500 CALLs and it is almost certain that in this month expiry NIFTY will stay above 6500 if not 6450. CALL premium of this month is increasing and PUT premium of next month is very high and also increasing. So traders are unsure for growth in next month and moght be buying PUTs. In view of this analysis selling CALLs of 6600 for next month could be the safest strategy for the moment.
Reliance:
Buy Reliance 900 PUT around 8-9.
Disclaimer: This blog does not take any responsibility of your profit/loss
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