As we observe the trading pattern in the new settlement, probably the option writing has not been completed. Build up is still going on. All the Technical Analysts have been forced to project nifty levels to huge long as well as huge bottom. What happens at the end of the month? Where is the way for f & o traders? Today, taking cue from global markets, our markets have fallen to Nifty 4447. Then, we can read that resistance 4520 was strong. Now, sgx nifty was traded low at 4380. Dow below -200, entire global cues in red. FII data fully -ve. One clue is over that we may trade up to 4380, but below that? No indication of puts open interest decrease. If tomorrow, there is any reduction in put open interest that may be an indication for further fall of markets. If not, we have to wait for bull's steam exhaust. May be in the next week.
Hold put options with a stop loss nifty 4400 in the gap down opening for tomorrow.
One cue for bulls is clearance of nuclear deal. Let us wait and see. Until markets comes below nifty4200 sensex 14000 bulls may dominate once again.
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