NIFTY TREND

It was a blockbuster Friday when Nifty surged from 10690 to 11381 with in two hours.  This is the best rally ever seen during this decade. Bank Nifty climbed 2700 points up and both cooled down a little bit, as the bulls have come back like a typhoon cheering the FM's tax cuts to Corporate sector. The irony is when the Government announced surcharge hike to FPI amounting to 450 Cr to exchequer, FPIs pulled the market down  by 1400 points, where as this Tax relief costs the Government further deficit in budget, downing GDP by another 1%, but the market cheers with a record rally.  Very strange.. But that is market.

Coming back to trend, Nifty has crossed even 200 DMA of 11228. For the past 3 months, 11141-200 has been stiff resistance.  The Nifty Call Option at 11200 stands at 18.99 lacs, 11100 at 15.50 lacs and 11000 Ce at 20.11 lacs. On the Put side 11000 Pe has the highest OI 48.55 Lac. 

This says that the nifty level has shifted to 11000-11200 range.  It will be interesting to see whether the OIs of CEs are getting reduced on Monday. That indicates short covering of futures and options position by FPIs. If that happens then the rally can extend further. Otherwise a down side is inevitable.

DO NOT CHASE THE MOMENTUM AS VIX IS STILL NOT COOLED DOWN DESPITE MASSIVE RALLY. 

I congratulate my members who made profits in 10800 CE bought around 46 on Thursday and made good returns. 

Monday levels:

Nifty Support  11250/11036/10953/10823  Resistance 11382/11595

Bank Nifty Support 28905/28015/27242  Resistance 29419/30251.

Range for Nifty and BN, both are very wide and a trade with extreme caution is advised on Monday.  Nifty may slip down by 250 points easily by way of profit booking. 

For Monday we have already identified the Options trade and ready for decent returns.

Good Luck!