Both Nifty and bank nifty obeyed the levels and closed above 10250/24925 yesterday. Remember, if the first day of the week start with a bullish note, you may expect the trend to continue. Trend reversal is seen in Nifty and BN yesterday when the upward rally started by 2 PM. The bottom as of now is 10104.
Points to note :
1. Volatility index is high. It has to cool down.
2. The CE premium is high. For example 10500 CE premium is 111 when the index is at 10250. One must wait for premium to come down. You will find the premium shrinking even the market shoots up as the VIX will go against CE premium. No doubt I am in favor of market moving up.
3. There could be volatility till the time VIX gets cooled off.
4. Use dips to buy CE. DO NOT RUSH. You cannot pay 115 premium for OTM CE 10500 which is still 250 points far away from spot.
ADVISE: Go long in nifty and bank nifty for target 10475/25372.
Option trade is advised for members on board.
Happy Trading!!
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