Nifty closed on a flat note of Friday at 6694 level.The first resistance going up is at 6721-25 level.Next resistance is at 6742-46,6767-72,6813-18,6855-60,6683-88,,6922-27,6960-65,7002-7007 level . The first support is at 6668-63 level.Next are at 6640-35,6615-10,6577-72,6538-33,6510-05,64 85-80,6443-39,6395-90 level.
The trend is still bullish however nifty is fundamentally slightly overvalued and the expectation of stable centre govt is pushing market upward, however we shall see high volatility till may 16 and a strong central govt expectation can propel nifty up to 7000 level and a fractured mandate can do vice versa a 1000 point correction or more.
It is good idea to have some hedging on your portfolio unless your aim is for long term.The best idea for short and medium term investors is to invest fully with hedging to prevent unexpected risk and since the call is also ruling on high premium we think a good strategy is to sell calls and invest in equity(at least half of the notional value of option strike for proper hedging) .
The May series options have already been trading on high implied volatality(31) after a long gap means market is expecting an either way move this month.The fear factor is slightly increasing , and one needs to be very alert on ones position .Hence intra day resistance are at 6725 and 6746 level and one can expect the bull trend to continue ,unless nifty closes below 6663 level and on downside if nifty goes below 6663 close all longs, as the index may go down to 6550 or even lower levels..
The trend is still bullish however nifty is fundamentally slightly overvalued and the expectation of stable centre govt is pushing market upward, however we shall see high volatility till may 16 and a strong central govt expectation can propel nifty up to 7000 level and a fractured mandate can do vice versa a 1000 point correction or more.
It is good idea to have some hedging on your portfolio unless your aim is for long term.The best idea for short and medium term investors is to invest fully with hedging to prevent unexpected risk and since the call is also ruling on high premium we think a good strategy is to sell calls and invest in equity(at least half of the notional value of option strike for proper hedging) .
The May series options have already been trading on high implied volatality(31) after a long gap means market is expecting an either way move this month.The fear factor is slightly increasing , and one needs to be very alert on ones position .Hence intra day resistance are at 6725 and 6746 level and one can expect the bull trend to continue ,unless nifty closes below 6663 level and on downside if nifty goes below 6663 close all longs, as the index may go down to 6550 or even lower levels..