GOOD MORNING!!!
MARKETS OPENED THE DAY ON A POSITIVE NOTE AHEAD OF RAILWAY BUDGET AS THERE WAS GOOD AMOUNT BUYING INTEREST SHOWN BY INVESTORS IN RAILWAY RELATED STOCKS, MARKETS WERE VOLATILE AND SEE-SAWED IN A RANGE OF ABOUT 500 POINTS AS INVESTORS STAYED NERVOUS TO OPEN LONG POSITIONS AT HIGHER LEVELS. THE BOURSES WENT FOR SOME SHORT RALLIES BUT THEY REMAINED SHORT LIVED AS PROFIT BOOKING IN SOME KEY HEAVYWEIGHT STOCKS DRAGGED THE INDICES BACK. THE LATE SHORT COVERING RALLY WHICH CAME AFTER THE BENCHMARKS DRIFTED INTO THE RED FOR A BRIEF PERIOD HELPED THEM TO EVENTUALLY END THE SESSION ON A POSITIVE NOTE AHEAD OF THE UNION BUDGET. THE KEY FACTOR FOR MARKET TO BLEED IN THE MID MORNING TRADE WAS RAILWAY BUDGET BEING NOT SO LUCRATIVE AND FAILED TO GIVE ANY KIND OF A DIRECTION AND MARKETS. MARKETS CLOSED IN POSITIVE AT THE END OF THE TRADING SESSION WITH MODEST GAINS, BREADTH REMAINED POSITIVE AT THE END OF THE TRADE.
TODAY MARKETS WOULD OPEN BE RANGE BOUND AND HIGHLY VOLATILE AND WE MAY SEE VERY SECTOR SPECIFIC MOVES AHEAD OF BUDGET. WE MAY LIKELY TO SEE STOCKS MOVING HAY WAY, THERE WOULD BE STOCK AND SECTOR SPECIFIC MOVES. ONE IS ADVISED TO STAY VERY CAUTIOUS IN THE MARKETS AND BETTER WAY TO TRADE IN THE MARKET WOULD BE BUYING A STRANGLE AND LEAVING AS WE ANYWAY HAVE AROUND 31 DAYS FOR EXPIRY FOR THE SAME AND WE ARE FORESEEING THE MARKETS TO COME DOWN OR MOVE UP BY AROUND 500 POINTS IN NIFTY. IF NIFTY TRADES 5340 LIKELY TO MOVE UP TO 5380 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5420 LEVELS AND ANY TRADE OR CLOSE ABOVE THIS POINT WOULD TURN MARKETS ON TO THE POSITIVE SIDE OF THE WAVE AND WOULD SEE A SOLID MOVE IN NEXT FEW SESSIONS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5300 THEN WOULD COME DOWN TO 5260 LEVELS AND BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5220 LEVELS AND ANY FURTHER TRADE BELOW THIS POINT WOULD DRAG NIFTY BELOW 5200 AND CLOSE BELOW 5200 WE CAN SEE MUCH MORE DOWNSIDE IN THE COMING FEW SESSIONS. ONE NEEDS TO BE VERY CAUTIOUS ON TWO NUMBERS ON THE CLOSING BASIS IN THE MARKETS ONE IS NIFTY ABOVE 5420 LEVELS AND NIFTY BELOW 5200 LEVELS BOTH ARE VERY DANGEROUS IF IT CLOSES ABOVE 5420 WE MAY SEE NIFTY TO MOVE UP MUCH HIGHER AND IF BELOW 5200 THEN WE SEE NIFTY TO FALL MUCH FURTHER FROM THIS POINT.
TODAY MARKETS WOULD OPEN BE RANGE BOUND AND HIGHLY VOLATILE AND WE MAY SEE VERY SECTOR SPECIFIC MOVES AHEAD OF BUDGET. WE MAY LIKELY TO SEE STOCKS MOVING HAY WAY, THERE WOULD BE STOCK AND SECTOR SPECIFIC MOVES. ONE IS ADVISED TO STAY VERY CAUTIOUS IN THE MARKETS AND BETTER WAY TO TRADE IN THE MARKET WOULD BE BUYING A STRANGLE AND LEAVING AS WE ANYWAY HAVE AROUND 31 DAYS FOR EXPIRY FOR THE SAME AND WE ARE FORESEEING THE MARKETS TO COME DOWN OR MOVE UP BY AROUND 500 POINTS IN NIFTY. IF NIFTY TRADES 5340 LIKELY TO MOVE UP TO 5380 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 5420 LEVELS AND ANY TRADE OR CLOSE ABOVE THIS POINT WOULD TURN MARKETS ON TO THE POSITIVE SIDE OF THE WAVE AND WOULD SEE A SOLID MOVE IN NEXT FEW SESSIONS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5300 THEN WOULD COME DOWN TO 5260 LEVELS AND BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5220 LEVELS AND ANY FURTHER TRADE BELOW THIS POINT WOULD DRAG NIFTY BELOW 5200 AND CLOSE BELOW 5200 WE CAN SEE MUCH MORE DOWNSIDE IN THE COMING FEW SESSIONS. ONE NEEDS TO BE VERY CAUTIOUS ON TWO NUMBERS ON THE CLOSING BASIS IN THE MARKETS ONE IS NIFTY ABOVE 5420 LEVELS AND NIFTY BELOW 5200 LEVELS BOTH ARE VERY DANGEROUS IF IT CLOSES ABOVE 5420 WE MAY SEE NIFTY TO MOVE UP MUCH HIGHER AND IF BELOW 5200 THEN WE SEE NIFTY TO FALL MUCH FURTHER FROM THIS POINT.
LONG STRANGLE
BUY 5100 PE AND 5500 CE AND HOLD IT TILL EXPIRY
ONE CAN LOOK AT STOCKS LIKE RECLTD, IFCI AND IDFC FOR LONG STRANGLE
