Nifty (6001) ‘the market is now typically sideways’ and the market has traded sideways with a positive bias.Technically the positive bias continues and the market also is in a sideways mode.
The crucial support on the downside for the Nifty is 5950 and resistance at 6050-6125
50 % retracement of the fall from 6338 to 5960 i.e 6014 is first target, 2nd target is 6090.
6000 call has got Max OI at 77 L saws call writers covering the calls, which opens upside move of the market beyond 6000.Only 6100 call saw long build up with addition of 13 L contacts.Which suggest next market target is 61.8 % retracement i.e 6090.
5800 put has got Max OI 86 L, interestingly hude put writing was seen at 6100 put, which clearly incdicates the market is moving UP.
The chart shows clear breakout of the channel, i.e trendline joining 6388 and 6069.
The amount of time nifty has spend today in 5980-6000 zone, shows it will act as strong support in comming days.
Nifty Range: 5900-6100, support 5950, resistence 6050/ 6090.
Trading stratergy.
1. Buy 1 6000 call and sell 2 6100 call, total cost 17 Rs, max 100 Rs. profit if Nifty expires at 6100, max loss 17 Rs. If nifty expires below 6000.
Book profit when nifty comes in 6070 and 6090 zone.
Tips. Avoid shorting in Nifty, as shorts are badely trapped, and any dip will bring short covering, better to buy in dips, as upside momentum is peaking UP.
Thanks and Regards,
Subhag Ghosh
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