Put writing was seen at strike price 7,900 (6.5L contracts added) while Put unwinding was seen at strike prices 8,000 (4.5 L contracts shed).
The outlook for 2017 remains mixed, but experts are optimistic about the strength of the equity market. The indices are expected to trade rangebound in 2017.
The domestic equity market is expected to remain rangebound for the next 2 months at least, say experts. But investors can use dips to buy quality stocks.
Nifty50 was trading around its crucial support level of 7,950, weighed down by losses in IT, realty, power, metal, capital goods, banks, and auto stocks.
Valuations of many stocks as well as benchmark indices have become reasonable after recent corrections. Market veterans say investors should use declines.
The bears have strengthened their grip, but it is also true that the index is trading around its crucial support levels, which could lead to a small pullback rally.
MACD is one of the most effective trend-following momentum indicators, which can be used to spot a change in the short-term trend of the market.
Focus of investors, especially in the New Year, should be on getting the right stocks in the portfolio to reduce or diversify risk and enhance returns.
Put writing was seen at strike prices 7,500 (1.3L contracts added) and 7,800 (5.78L contracts added) while Put unwinding was seen at strike price 8,000 (1.6L contracts shed).
Wednesday’s options data showed there was fresh Call writing at strike prices 8,000 to 8,200, which is likely to limit upside for the Nifty50.
- No blogs yet have been written by the author, we’re sure the author will contribute one soon