INSUBCONTINENT EXCLUSIVE:
By Rahul SharmaBuying at the lower levels is expected to continue during the week, which may take the Nifty towards 11,200 and higher
according to technical analysts
The sharp correction in crude prices over the last few days also provides comfort to the oil marketing companies, as the risk-reward remains
favourable, they said.
Where are we The week kick-started with a gap up opening on Monday and bulls capitalised on it by pulling the index
This was followed by positive momentum in the next three trading sessions
Due to decent buying in the index heavyweights, Nifty formed a bullish candle on weekly chart and closed above its recent swing highs.
What
The rally was supported by good amount of long build-up in Nifty futures
FIIs, too, participated in the recent up move by taking decent long positions in index futures
This is a typical market where strong hands are buying strength and shorting weakness and the same can be seen in the weak market breadth of
last three session.
What could Investors do We have been recommending our clients to buy the Call options on the Nifty since last 2-3 weeks
now and advice to continue holding on to them until 11,200
Traders can buy the 11,200 Call options at current levels and participate in the momentum that is expected to come above 11,000
Derivatives Strategy, Centrum Broking
