Last week has given some relief to bulls. Global cues are supportive to bulls. Nifty closed near high of week. However is that just a small pause in the ongoing down-move? or Is the down move over and Nifty is ready to conquer the highs again?
Technical Overview: Last week Nifty made high of 8008 and low of 7691. A range of 317 points. Nifty closed near high of last week, suggesting bulls have better control- at-least for the time being.
As
was mentioned in my last newsletter we have positive news from RBI to
which Nifty has reacted- but not to great extent. No symptoms on charts
which tells us that Nifty has resumed up-trend.
I feel Nifty is now stuck
in a broad range between 7540-8091. Even if Nifty breaks this range
above 8091 it has strong supply zone near 8225-8332. This area may not
be easy to conquer for Nifty.
Last week I had given following trade on Nifty:
Sell NIFTY 7300 Put
Buy NIFTY 7100 Put
Sell NIFTY 8200 Call
Buy NIFTY 8400 Call
Total premium credit we got Rs 47.55.
The trade expected to earn profits when premium in most of these
options start decaying. The decay usually starts after first 15 days of
series. So we have to wait for further action.
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