OI in Nifty futures still hovering around the 17-18 mill mark; prices have risen sharply and the critical level of 5092 has been broken on upside in today's open itself. Now as long as prices hold the crucial 5032 mark on closing basis, one may look to buy the dips from a trading perspective.
Nifty June futures coming close to parity / some premium [short-covering effect] whilst BankNifty futures are still trading at discount.
We need to bear in mind that just as the case was in Dec '11 / Jan '12, this is a liquidity / optimism fuelled rally than anything else [and will be the same all the way to 5944 on Nifty spot levels though it remains to be seen how much prices will continue to rally]
For BankNifty the 2 critical levels are 10200-250 and 9925-9950 levels; a close above 10200-10250 zone can take prices higher by another 150-200 points and a close below 9925-9950 levels can do a similar exercise downwards. Volatility can be expected to be higher over the next 10 to 12 weeks so trading requires one to be very alert and agile as most often than not, prices will be trending in either direction than grinding IMHO
Nifty June futures coming close to parity / some premium [short-covering effect] whilst BankNifty futures are still trading at discount.
We need to bear in mind that just as the case was in Dec '11 / Jan '12, this is a liquidity / optimism fuelled rally than anything else [and will be the same all the way to 5944 on Nifty spot levels though it remains to be seen how much prices will continue to rally]
For BankNifty the 2 critical levels are 10200-250 and 9925-9950 levels; a close above 10200-10250 zone can take prices higher by another 150-200 points and a close below 9925-9950 levels can do a similar exercise downwards. Volatility can be expected to be higher over the next 10 to 12 weeks so trading requires one to be very alert and agile as most often than not, prices will be trending in either direction than grinding IMHO
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