Today it is time for Rajan. If he also rides on waive of popular decisions, market could see new highs in spite of two digits inflation, weak Rupee (still above 60), costly crude even after war threats have diminished and unfavorable BOP. However, if Rajan brings some measures for liquidity squeeze, market will not like that and there will be huge profit booking in banking sectors.
Some banks obviously under RBI guidance started offering house loans and car loans at cheaper rates and if there is major announcement with that effect, in spite of gloomy environment in the country market will show spurt.
So in short there are lot of ifs and buts. At the time of writing this blog Singapore NIFTY is in green. This means trades are buying still at such a high price. This is unusual, nobody will buy anything which is costly howsoever rich he/she is. Hence there is argument for NIFTY going up by another 100/150 points from here.
Nevertheless, if there is rate hikes then NIFTY can see 5800 levels again. And I personally would like to take that bet even if I went wrong in past 11 days! I never anticipated 20% rally in just 11 trading days, this is what an option writer does not want. The Trading account is in loss as hedged NIFTY buy CALLs were just not enough to absorb losses in Options CALL sale contracts.
Still one week to go and anticipating rally to curb henceforth. Today definitely there will be 100 points move possible in NIFTY after announcement and since I am still holding shorts, wish it to be towards south.
Recommendations for the D day:
Buy NIFTY 6100 CALLs between 70-75 of September expiration or 6200 CALL at 50 of September expiration date before taking any bearish positions mentioned below.
Buy Axisbank 1050 PUT of October expiry between 40-45.
Though yesterday FII permitted to invest in Axisbank, perhaps this stock is still more vulnerable for any adverse announcement from RBI today and shall see correction till 800 very soon. It has huge profit potential.
Buy BankNIFTY 11000 put between 160-170 for September expiry.
Both this trades are in anticipation of rate hike or liquidity squeeze announcements today and plunge in Bank stocks. Nothing has changed in 11 days, NPA concerns and bad debts must be there and bank stocks will collapse faster than others.
NIFTY: Buy 6000 PUT between 30-35. If in case market corrects as mentioned it will take support at 5800-5820 levels before expiry and 6000 PUT of September expiry could trade in the range of 180-220. Risk reward ratio is very good.
Disclaimer: This blog does not take any responsibility of your profit/loss
Some banks obviously under RBI guidance started offering house loans and car loans at cheaper rates and if there is major announcement with that effect, in spite of gloomy environment in the country market will show spurt.
So in short there are lot of ifs and buts. At the time of writing this blog Singapore NIFTY is in green. This means trades are buying still at such a high price. This is unusual, nobody will buy anything which is costly howsoever rich he/she is. Hence there is argument for NIFTY going up by another 100/150 points from here.
Nevertheless, if there is rate hikes then NIFTY can see 5800 levels again. And I personally would like to take that bet even if I went wrong in past 11 days! I never anticipated 20% rally in just 11 trading days, this is what an option writer does not want. The Trading account is in loss as hedged NIFTY buy CALLs were just not enough to absorb losses in Options CALL sale contracts.
Still one week to go and anticipating rally to curb henceforth. Today definitely there will be 100 points move possible in NIFTY after announcement and since I am still holding shorts, wish it to be towards south.
Recommendations for the D day:
Buy NIFTY 6100 CALLs between 70-75 of September expiration or 6200 CALL at 50 of September expiration date before taking any bearish positions mentioned below.
Buy Axisbank 1050 PUT of October expiry between 40-45.
Though yesterday FII permitted to invest in Axisbank, perhaps this stock is still more vulnerable for any adverse announcement from RBI today and shall see correction till 800 very soon. It has huge profit potential.
Buy BankNIFTY 11000 put between 160-170 for September expiry.
Both this trades are in anticipation of rate hike or liquidity squeeze announcements today and plunge in Bank stocks. Nothing has changed in 11 days, NPA concerns and bad debts must be there and bank stocks will collapse faster than others.
NIFTY: Buy 6000 PUT between 30-35. If in case market corrects as mentioned it will take support at 5800-5820 levels before expiry and 6000 PUT of September expiry could trade in the range of 180-220. Risk reward ratio is very good.
Disclaimer: This blog does not take any responsibility of your profit/loss
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