Wednesday, February 10, 2016

To be or not to be . . That is the Question....

Hi All,

As expected Nifty traded with a negative bias for yesterday. As Nifty did not go higher to cross any resistances it is expected to trade negative even today. The key level to watch out for will be 7240-7230....

SGX Nifty is already down by 65 points which suggest that Nifty may open near or even below 7240 mark, however before taking any short trades it is advisable that the markets break 7240-7200 mark convincingly.

However, if Nifty holds 7240 levels, we can see at least a small bounce till 7500-7530 levels.

As mentioned in yesterday’s post, the IV moved up by as much as 7-8% yesterday and is currently trading at 21.75%, near a daily resistance of 22.10-22.15%, since it is trading near a resistance, it is the only ray of hope for bulls, as if IV cools down a bit markets usually tend to take it in a positive way, however the same can have a lagging effect.

Traders are once again advised to trade cautiously as the IV is likely to trade higher on account of key economic events lined up for the month.

In a nutshell, the for market bias for intraday, short term and even midterm will depend on 2 key factors i.e. 7240-7200 zone and the IV coming lower after taking resistance near daily supply areas of 22.10-22.15%. 

It is a "To be or not To Be" questions for bulls... fingers crossed.


Cheers

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