Both indices had a gap up opening but this triggered a massive sell off from FIIs resulting in big red candles. The session was so volatile, especially in the second half that it was impossible not to hit your stop loss and in such scenarios you don’t have the liberty to keep big SL.
Option premiums fell off a cliff at the start for reasons not so clear. This made option selling not so lucrative.
Today’s was one of the highest selling by FIIs amounting to 6644 cr and they have officially sold more than what they had done last year and the figure stands around 98050 cr.
Oil prices have come down as US released some oil reserves to cool down the commodity market.
Option data is of no use as proven in last few trading sessions. Volatility has made it so dynamic that it is losing its importance. Nevertheless, the ranges are Nifty 16500-17000, banknifty 35000-36000. Both indices have short build up. So, will be more confident with my resistance levels than my supports.
What to expect tomorrow? Both indices trading below 200 EMA and today’s movement has firmly shifted the bias to the short side. So expect some more crucial levels to be broken. 16000 and 34000 can be expected in both the indices. What to trade? Sell near calls and you can hedge with out buying. 36000 CE and 16000 CE can be sold with buying of at the money call.
Option premiums fell off a cliff at the start for reasons not so clear. This made option selling not so lucrative.
Today’s was one of the highest selling by FIIs amounting to 6644 cr and they have officially sold more than what they had done last year and the figure stands around 98050 cr.
Oil prices have come down as US released some oil reserves to cool down the commodity market.
Option data is of no use as proven in last few trading sessions. Volatility has made it so dynamic that it is losing its importance. Nevertheless, the ranges are Nifty 16500-17000, banknifty 35000-36000. Both indices have short build up. So, will be more confident with my resistance levels than my supports.
What to expect tomorrow? Both indices trading below 200 EMA and today’s movement has firmly shifted the bias to the short side. So expect some more crucial levels to be broken. 16000 and 34000 can be expected in both the indices. What to trade? Sell near calls and you can hedge with out buying. 36000 CE and 16000 CE can be sold with buying of at the money call.