Nifty could scale up to 9039 on Friday, but it was only for few hours and again rolled down to 8500 level and finally closed at 8660. The weekly candle is green with a close above 7945 and slightly below 8745. The quick recovery and a sharp bounce has given nifty a better look on a weekly basis. But it is still not out of the woods.On a monthly basis, this is the worst ever fall from 11433 to 7511, almost 4000 points in a month.
In my last message I clearly indicated 7945/8355 which are key numbers for nifty to take directional move. Hope you have enjoyed the rally.
Range for the week for nifty and bank nifty is as below:
Nifty 7450-8670 Bank Nifty 17800-20600.
Wait for reversal near 8150/18600 to pick CE. PE can be taken if Nifty/ Bn breaks 8535/19700. Till then one should exercise patience. Target is 8150/18600.
The 8700 CE and PE option prices closed at 320 & 401 respectively. Needless to say it is abnormal. Till the time you see the total premium on ATM strike price reaches 300-350, you must exercise utmost caution in index options.
Good Luck!
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