NIFTY FUTURE 30 MIN / NIFTY FUTURE EOD
NIFTY FUTURE:
In today's trading, Nifty Future saw a total trading range of 28 points during the day - making it very difficult to trade. Bank Nifty showed more volatility but closed near the low of the day - may be as matter of caution ahead of RBI policy tomorrow.
Not much to say except wait for the policy and be prepared for a sharp move either way - depending on how the market perceives the policy announcement particularly ahead of FNO settlement. As regards the levels for tomorrow - Below 5000 downside and above 5075 upside possible. On the downside, 4980(previous gap) - 4900 and 4835. Considering that we are just a day short of FNO settlement, it is advisable to keep tight stop loss for short positions at 5075.
Index Option chain continues to show significant increase in open interest for puts not only for Jan series but also for Feb series.
As suggested in the weekend post, not trading ahead of such important events may end up more rewarding - as money saved is money earned. If trading every day is a compulsion, stick to buying puts and calls, as your loss is limited and profit unlimited i.e, if you are on the right side of the market.
Whatever you plan to do, please do not forget to use STOP LOSS.
With Best Wishes,
Ketan Asher.
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