Nifty just did not hold out on the first day in the new month JUNE. With no USA and UK markets open on Monday, probably we thought, who the hell knows what’s in store tonight! So, the super early June sale was set up early in the session and the rest of the day just panned out accordingly. The surprising thing is that the June Series has begun with very high premiums being recorded in the Options segment and while it is can be seen as a bobby trap, the triple point decline on the nifty did not see a proportionate gain on the puts and a decline on the calls. So, what’s being hidden in the wraps? One would do well to answer some serious questions at this point. It is for sure that the operators are playing a mind game and the weak bulls are being weeded out. Every evening when a retail trader takes a position, the next morning proves him wrong. Calls are nose diving and Puts crash landing. The premiums are just seeing amazing erosion and hence trading safe and less frequently would be a safe strategy. We closed out at 4944 today which is below 4965 and above 4910. As long as 4905 is held on a intraday as well as a closing basis, we may see a razor sharp bounce. The long story seems intact although the volumes seem to be an inconsistent indicator and refuses to correlate with other tools. We may find short term support at 4908.25 which if breached decisively with volumes then it may further slide to 4880/4861. Strong resistance for the counter exists at 4979.75 which if crossed then NF may move up to 5007/5024. However, the Nifty Futures closed above it’s 50 WMA at 4918.
Disclaimer:: I have some position in Nifty, so I may have some vested interested on this recommendation. Trading is very risky. Traders/Investors are advised to trade as per their risk taking apetite.
For intraday calls, the same will be posted in the other blog "jayfromstockmarketsinindia.blogspot.com" which is free but on invitation basis.
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