No change so far.
There could be high probability of pre- budget rally till 7900/8000 if NIFTY crosses 7690 tomorrow. It showed hanging man pattern, it could be bearish only if there is follow up action tomorrow.
In general, it looks like NIFTY will not respect bearish signals, on the contrary, today small dip was bought in to.
NIFTY is not breaching two days low ie 7579-7580.
First sign of weakness could be intra-day NIFTY spot below 7575.
Be cautious in any bearish position if NIFTY goes above 7690 tomorrow. Premiums are very low, 7800 CALL and 7500 PUT are near 40 and 30 respectively, IVs are low. So there is possibility that NIFTY will move sideways for next 12 days till expiry.
Adjust our strategy if NIFTY goes above 7690.
Book profit in 7300 PUT and exit around 5-6.
Keeping view of sideways market till expiry, one can sell 7900 CALL of this month expiry and 7400 PUT of this month expiry in equal quantity. Delta will be around 5.
For time being hold 7700 CALL, today there is high open interest, and 109 600 contracts added. Hence we will decide about it on Thursday. There is high possibility that NIFTY up-move will be capped before expiry near 7700.
It is very surprising, bulls are not factoring weak monsoon predictions and think everything will be fine with Modi Government without monsoon. It is clearly over optimism and one can buy cheap PUT such as 6900 PUT for next month expiry. I don't expect market to go near 6900 next month but risk reward ratio will be very high, if it happens.
Disclaimer: This blog does not take any responsibility of your profit/loss.
There could be high probability of pre- budget rally till 7900/8000 if NIFTY crosses 7690 tomorrow. It showed hanging man pattern, it could be bearish only if there is follow up action tomorrow.
In general, it looks like NIFTY will not respect bearish signals, on the contrary, today small dip was bought in to.
NIFTY is not breaching two days low ie 7579-7580.
First sign of weakness could be intra-day NIFTY spot below 7575.
Be cautious in any bearish position if NIFTY goes above 7690 tomorrow. Premiums are very low, 7800 CALL and 7500 PUT are near 40 and 30 respectively, IVs are low. So there is possibility that NIFTY will move sideways for next 12 days till expiry.
Adjust our strategy if NIFTY goes above 7690.
Book profit in 7300 PUT and exit around 5-6.
Keeping view of sideways market till expiry, one can sell 7900 CALL of this month expiry and 7400 PUT of this month expiry in equal quantity. Delta will be around 5.
For time being hold 7700 CALL, today there is high open interest, and 109 600 contracts added. Hence we will decide about it on Thursday. There is high possibility that NIFTY up-move will be capped before expiry near 7700.
It is very surprising, bulls are not factoring weak monsoon predictions and think everything will be fine with Modi Government without monsoon. It is clearly over optimism and one can buy cheap PUT such as 6900 PUT for next month expiry. I don't expect market to go near 6900 next month but risk reward ratio will be very high, if it happens.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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