GOOD MORNING!!!
MARKETS BEGAN THE DAY ON A WEAK NOTE AS MOST INVESTORS REMAINED ON THE SIDELINES IN EARLY TRADE TRACKING AMERICAN MARKETS WHICH WITNESSED A HUGE SELL-OFF. MARKETS GYRATED IN A TIGHT RANGE FOR MOST PART OF THE DAY AS MOST TRADERS REMAINED UNCOMFORTABLE TO OPEN FRESH POSITIONS AHEAD OF THE UNION BUDGET DUE ON MONDAY. BUT THE LAST HOURS OF TRADE SAW THE FRONTLINE INDICES BEING DRAGGED TO LOWER THAN LEVELS ON PROFIT BOOKING. THROUGHOUT THE DAY THE MARKETS REMAINED IN THE SIDE LINES AND EVEN THE BREADTH OF THE MARKETS REMAINED FLAT BUT BY THE END OF TRADE, BOURSES CAUGHT UP WITH THE WEAKNESS THAT WAS PREVAILING ACROSS THE GLOBE WITH EUROPEAN MARKETS STRUGGLING TO FIND A BOTTOM AS ONGOING CIVIL UPHEAVAL IN MIDDLE EAST AND A BIG JUMP IN OIL PRICES DUE TO IT, WEIGHED ON THE INVESTORS' MINDS AND WEAKNESS CROPPED IN AND CLOSED THE DAY ON A WEAK NOTE.
TODAY MARKETS WOULD OPEN NEGATIVE AND WOULD REMAIN IN RANGE BOUND AND NIFTY WOULD TRADE ON A HIGH VOLATILITY. IF NIFTY TRADES BELOW 5425 THEN LIKELY TO COME DOWN TO 5400 AND BREAK BELOW THIS LEVEL WOULD TAKE IT TO 5385 AND CLOSE BELOW THIS LEVEL WOULD DRAG NIFTY IN DAYS AHEAD. ON THE POSITIVE SIDE IF NIFTY TRADE ABOVE 5442 THEN WOULD TAKE IT TO 5465 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5497 LEVELS ANY TRADE ABOVE THIS POINT WOULD TAKE NIFTY FURTHER UPSIDE TO 5521 LEVELS. TODAY ONE SHOULD BE VERY CAUTIOUS IF NIFTY BREACHES BELOW 5400 LEVELS AND TRADES, ONE CAN TAKE A BUY POSITION KEEPING 5400 AS STOPLOSS FOR THE ENTIRE DAY, WE MAY LIKELY TO SEE SOME SHORT COVERING DURING THE DAY WHERE NIFTY WOULD MOVE SLIGHTLY UPSIDE. ONE HAS TO REMEMBER WE MAY CONTINUE TO SEE HIGH PREMIUMS IN THE OPTIONS TILL BUDGET SESSION (MONDAY) BUT POST BUDGET SESSION DON’T THINK THE PREMIUM WOULD REMAIN HIGH SO ONE CAN EVEN THINK OF TAKING SHORT STRANGLE IN NIFTY FOR THE MONTH OF MARCH FOR SOME DECENT PROFITS.
TODAY MARKETS WOULD OPEN NEGATIVE AND WOULD REMAIN IN RANGE BOUND AND NIFTY WOULD TRADE ON A HIGH VOLATILITY. IF NIFTY TRADES BELOW 5425 THEN LIKELY TO COME DOWN TO 5400 AND BREAK BELOW THIS LEVEL WOULD TAKE IT TO 5385 AND CLOSE BELOW THIS LEVEL WOULD DRAG NIFTY IN DAYS AHEAD. ON THE POSITIVE SIDE IF NIFTY TRADE ABOVE 5442 THEN WOULD TAKE IT TO 5465 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5497 LEVELS ANY TRADE ABOVE THIS POINT WOULD TAKE NIFTY FURTHER UPSIDE TO 5521 LEVELS. TODAY ONE SHOULD BE VERY CAUTIOUS IF NIFTY BREACHES BELOW 5400 LEVELS AND TRADES, ONE CAN TAKE A BUY POSITION KEEPING 5400 AS STOPLOSS FOR THE ENTIRE DAY, WE MAY LIKELY TO SEE SOME SHORT COVERING DURING THE DAY WHERE NIFTY WOULD MOVE SLIGHTLY UPSIDE. ONE HAS TO REMEMBER WE MAY CONTINUE TO SEE HIGH PREMIUMS IN THE OPTIONS TILL BUDGET SESSION (MONDAY) BUT POST BUDGET SESSION DON’T THINK THE PREMIUM WOULD REMAIN HIGH SO ONE CAN EVEN THINK OF TAKING SHORT STRANGLE IN NIFTY FOR THE MONTH OF MARCH FOR SOME DECENT PROFITS.
