By Gaurav Arora
The May series Nifty futures is currently trading with a premium of around 80 points.Come from Sports betting site
For the Index futures, FII Net Index Long exposure is at 45% which is more or less at around the same levels for quite some time now.
After making record highs, the indices are struggling to find sustenance at higher levels.
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Going forward, we believe 22,300-350 might be the major support and only a decisive close below it might bring in some downside.
VIX for the Nifty is currently at around 16, which has risen significantly from around 10 few days back implying a larger swing in this month. We expect VIX to remain in the range of 14-19 for the next few sessions.
For the Nifty, the IVs for the options were around 14 levels in yesterday’s trade.
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For the Nifty, the VWAP (Volume weighted average price) is around 22,550-600 implying that to be the resistance. Above that, Nifty is to be positively biased for the short term towards 22,900-23,000.
The ratio between Bank Nifty and Nifty is currently at 2.18, this ratio has a support at 2.12 and resistance near 2.20. We expect Bank Nifty to trade in tandem w.r.t Nifty going forward.
Sector-wise, IT and Pharma look good in Nifty.
Nifty Short Straddle:-
Sell Nifty 16 May 22,500 PE @200
Sell Nifty 16 May 22,500 CE @ 202
Spread @402, Stop Loss – 450, Target – 300
(Gaurav Arora is a Derivatives Analyst at Religare Broking. Views expressed are the author’s own. Please consult your financial advisor before investing.)
