Traders should stay cautious and avoid fresh longs. However, any close above 7,970 in the next trading session can blow fresh lease of life among bulls.
The benchmark indices are likely to move in a range of 300 points till the expiry of December series with strike price 7,900 acting as a strong base.
Total Put open interest of 59.01 lakh contracts stood at strike prices 8,000, which will act as a crucial base for the market in the December series.
The Nifty50 slipped below its crucial support level at 7,900 weighed down by losses in realty, power, oil & gas, metals and capital goods stocks.
CY 2016 taught us many things, the most important one being to diversify into various asset classes to hedge risks. The ideal strategy should be to diversify portfolio.
The Nifty50 came under pressure and was trading around its crucial psychological support level of 7950, weighed down by losses in realty and power stocks.
The Nifty broke below its key support level of 8,000, but analysts said there are strong chances that it would see a technical pullback in the coming week.
Analyst outlook for CY17 is mostly positive, but the leaders of 2016 might not retain their lead in the coming year. Hence, a shift in portfolio is required.
Traders are advised to stay light as chances of a pullback rally are relatively high, which might get extended towards the 8,000 and 8,050 levels.
Unwinding in Put options of strike prices 8,000 and 8,100 and fresh Call writing at strike prices 7,900, 8,000 and 8,100 has limited the upside potential.
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