March 20, 2016
Time: 10 pm
Dalal Street Week Ahead:
Time: 10 pm
Dalal Street Week Ahead:
- Last week markets were highly volatile.
- Though markets were highly volatile, Nifty was trading between 7400 and 7600.
- Nifty gained about 100 points in the last one week.
- Finally Nifty managed to break 7600 towards the end of the week.
- Since US markets closed higher on Friday, Nifty is likely to open higher on Monday.
- Since all the important data are out, markets will be left for F&O traders.
- We have only three days of trading in the coming week and 4 days in the expiry week.
- So time value will be in favour of option sellers.
- There are no key economic data this week.
- Highest open interest among Puts is at 7400.
- Highest open interest among Calls is at 7700.
- Hence Nifty is likely to trade between 7400 and 7700.
- Markets may be volatile as people may not create positions ahead of 4 days of weekend.
- Volume is expected to go down and that may add to volatility.
- Banking and other rate sensitive stocks will be in focus as Govt. has cut interest rates of PPF, NSC, Indra Vikas Patra, etc.
- This is an indication for lower rates, RBI is almost sure to cut rates in April.
- Bank Nifty is likely to test 16000 by the end of this expiry.
- Sell Nifty 7400 Put and 7800 Call on Monday.
- Since there are only 7 more trading sessions, option premiums will fall as the time goes.
- Sell Bank Nifty 15000 Put and 16500 Call on Monday.
- Bank Nifty will face resistance at 16000 and will find support at 15000.
- Both these strategies will give more than 5% return in two weeks.
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