Nifty today was moving around our support number 11306 and did not give up. On the higher side it was supposed to reach 11485 but could not sustain at high and closed near our support.
Tomorrow RBI Policy outcome is expected. This should give direction to Nifty and bank nifty. Since both opened negative in the beginning of the week a healthy close above 11490 only can take nifty to higher levels.
Both the indices are extremely bearish and technically a bounce back is inevitable. It is advised not to be aggressive in bets in view of policy outcome ahead. Globally there seems to be more instability with US market exhibiting high volatility.
More than 50% of rise out of Corporate tax cut has gone in the wind. The range for nifty has widened from 11250-11600 causing concern for retailers.
On Option front, one can take a bet on 11500 CE around 30/- for 55/77/105 target keeping a SL around 24. Any break of 11250 means nifty likely to plunge to a low of 11060.
GOOD LUCK!
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