Sunday, 27 May 2018

NIFTY TREND

Friday saw Nifty futures negating all the Intra week losses and closed at 10608.50, very near to previous week close of 10608.  This indicates the reversal of  trend. Next challenge for nifty is to regain the   10645 level. A close above this should  see nifty moving towards 10787. 10700 CE has witnessed reduction in OI more than 1 Million. Premium has risen sharply  from 4.50 to 17.35 compelling the Call writers to close the position. 10600  PEs have seen substantial addition in OI over 1.7 Million.  It is crystal clear that   nifty is heading towards north direction and any dip is a buy till expiry. 

Bank Nifty futures also posted smart gain on a weekly basis and closed at 26240 ( Previous week Close 25920).  Next target for BNF is 26430/26590. It is likely to top out at this level. 

Alert: Do not short CEs at this juncture. 

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