Nifty Strategy for Today: Explaining strategy on Nifty Virendra Kumar of CNBC-Awaaz Said the first registration is at 23790-23863 while the bigger registration is at 23958-24045/24094. The first base is at 23473-23528 while the bigger base is at 23249 (21 Nov low)/23346-23406 (50 WEMA). The selling strategy below 24074 and 23788 has worked.
Virendra Kumar further said that FIIs have made their intention clear, ‘Sell and Sell’. Heavy selling was seen in all three cash, index, stock futures and index short now stood at 1.48 lakh contracts. Call writers occupy 23800-24000, heavy put writing at 23500, 23406 (50WEMA) is the important average.
Now we have a week of expiry and there is also a pullback in the US markets. He further said that do not trust any rally till 23790-23863, selling will work in the rally. Two levels are important for short covering and base, the first is at 23523 and the option base is at 23406 (50WEMA). Short covering/pullback will last above 23790-23863 only. If sustained above 23863, some short covering pullback is possible.
strategy on nifty bank
Giving the strategy for today on Bank Nifty, Virendra Kumar said that the first registration for Bank Nifty is at 50970-51140 while the biggest registration is at 51442-51690/51763. The first base is at the level of 50390 (200 DEMA)-50575 while the bigger base is at 49850-50104.
Virendra Kumar further said that selling worked in the rally below 51700, closing at lower levels of the day. Heavy selling was seen in the back of FIIs. There has been strong selling in HDFC Bank, Axis Bank. Call writers occupied 51000, highest OI was at 51500.
He said to sell in the rally till 50970-51140. 200 DEMA route is open, then go to 50104-49850. If it sustains above 51140, a pullback to 51442 is possible. Pullback test possible at 51442-51500, if not sustainable then short. Strong short covering possible above 51442-51500.
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