Nifty F&O Strategy: Move above 17,700 should be considered for fresh longs: ICICIdirect - The Economic Times

ersamoyor.blogspot.com
Strategy Positions:
Sell 27th April Nifty future at 17650-17670 & Buy 27th April 17650 Call at 70-75, Target: 17500-17400, Time Frame: till expiry. Rationale
The Nifty experienced some selling pressure at higher levels and lost more than 1% last week after sharp up move of nearly 1,000 points seen in the first half of the series. Broader markets have relatively outperformed as heavily beaten down stocks from the midcap and smallcap segments witnessed fresh buying ahead of the quarterly results. Going ahead, we expect the current consolidation to continue and a move beyond 17700 or dips towards 17,500 can be utilised for creating long positions.

From a data perspective, the VWAP of the series is placed at 17650 strike along with aggressive Call writing at 17,700 Call strike making these levels important hurdle. On the other hand, the Put base at 17700 strike is also strengthening suggesting limited declines. Hence from monthly expiry perspective, we believe only a sustain move above these levels may trigger fresh up move.

The open interest in the Nifty futures has remained low and Nifty is starting the settlement week with near 9.3 million shares which is significantly low suggesting no major directional bias prevailing in the market.

The volatility index (India VIX) has remained below 12 levels throughout the week along with US VIX, which has moved to its 52-week lows below 18 levels. Hence, an uptick in volatility cannot be ruled out, which may result in marginal profit booking in coming sessions. Thus only a move above 17700 should be considered for fresh longs.

As we are keeping our view moderate bearish hence we advise traders to go for short protective future, where the maximum loss for the trade would be |3760. While strategy will be in profit if the expiry comes below 17575 levels, or it move towards 17500 levels before the expiry.

(The author, Raj Deepak Singh, is Analyst – Commodity, Currency, & Derivatives, ICICIdirect)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Adblock test (Why?)

"strategy" - Google News
April 23, 2023 at 07:17PM
https://ift.tt/arf5ABU

Nifty F&O Strategy: Move above 17,700 should be considered for fresh longs: ICICIdirect - The Economic Times
"strategy" - Google News
https://ift.tt/5vQHh2C
https://ift.tt/qQOnGgi

Bagikan Berita Ini