The highest Put base is placed at the strike price 8,000 with 58 lakh contracts while the highest Call base is at the strike price 8,200 with 43 lakh contracts.
FIIs selling is likely to reverse, worst is priced in for Q3 results, and a friendly budget are some factors which Jhunjhunwala thinks will help markets.
The Nifty50 came under selling pressure after hitting its crucial resistance level of 8,200 weighed down by losses in IT, metals, auto, and telecom stocks.
There are a lot of global as well as domestic events lined up which will lead to volatility. Traders are advised to trade with strict stop losses.
Expectations from the Union Budget should fuel a pre-budget rally, but apart from that, there are no fresh triggers to take the market higher.
PM Modi applauded efforts made by the citizens who have displayed courage and patience over the last 50 days in making 'yagna' effective.
The first rule for investing is don't time the market – not now, not ever. Don’t rush to sell stocks on rallies. Instead, hold them for longer horizon.
After September, indices wiped out entire gains. The fall in the market was largely weighed down by US presidential elections and demonetisation back home.
The Nifty50 has formed a Bullish candle on daily chart and also formed a Bullish Engulfing pattern on weekly chart, which suggest positive sentiment.
Traders should not get carried away by this short-term recovery as the intermediate trend is still bearish and traders recommend investors to remain cautious.
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