Our markets reached last but one stage i.e., 2900 before a final (compared with a short term trading range) nifty 2600, may be before this settlement???. Addition of Open Interest in November series is dangerous to longs. Hence markets will go First to down side before going up side. Nifty closed at 2943 after touching low of 2917. Now Dow is trading +ve. Today's Global markets were all at - ve zone. Our FM statement regarding FII stock lending reversal is not fully clear as per time frame. Inflation is getting reduced. Petroleum minister's statement to reduce rates in the next week is also a +ve factor. RBI credit policy ???.
So we may see many big swings intra day for the coming weeks which gives an opportunity for option traders October series. Just buy below 20 price and sell at 60 + during the coming week. But be biased to down sides only.
May be we see a big run in the first 2 weeks in next month. Be prepared for buying 3300 calls November series below Rs40 to sell them 5 times +.
Get ready for down trades in the journey to nifty 2900-3050-2600 and -2900-3200-3500.
This is all my view but the big intra day swings are creating more pain to swing positional traders. Hence, one may confine to intra day option trades based on intra day charts than swing positional trades until nifty tests 2600 ( may be 2 times ) next weeks.
No comments:
Post a Comment