The FII’s we see have squared of long contracts and have added huge shorts over the days ….are they getting ready for the bad news? There has been no major additions to the open interest despite we are nearly a week into the Feb series, the punters actually sitting it out? Waiting to see who is standing last in this volatile market?
The safest play is take the ride up if the nifty spot goes beyond 6029/30 and get off at the highest and then buy into the 6000 or 5900 puts…and wait to see which way the market goes on Monday morning. If you have long positions which you can get off in profit then it would be wise to do so. If the market falls it will slice through the 200 DMA and fall further , and we may even see 5890 levels this time around. By that time you will end up in a bear hug.