Nifty 50
Nifty futures (Might expiry) (22,275) misplaced 2.1 per cent over the past week. As this occurred, the cumulative Open Curiosity (OI) of Nifty futures elevated – it rose to 155.7 lakh contracts on April 19 versus 130.4 lakh contracts on April 12. This means brief build-up.
That mentioned, the Might Nifty futures discovered assist at 22,000 and recovered on Friday. We count on the contract to see additional upside this week. The closest resistance stage as per the chart is at 22,500. Subsequent barrier is at 22,750.
But when futures fall beneath 22,000, it could possibly result in one other leg of downtrend the place Nifty futures may contact 21,500 this week.
The Put Name Ratio (PCR) of Nifty choices stood round 0.9 on Friday. So, the variety of name and put choices offered are practically the identical. Thus, possibility merchants don’t exhibit any bias. As per the choice chain of April contracts, the closest assist factors are at 22,000 and 21,800. Then again, potential hurdles are 22,300 and 22,500.
Technique: Purchase Might Nifty futures now at 22,275 and on a dip to 22,100. Place preliminary stop-loss at 21,900. When the contract reaches 22,500, elevate the stop-loss to 22,300. Guide earnings at 22,750. Alternatively, merchants should buy a 22,500-call possibility (Might month-to-month expiry). Exit this on the prevailing premium when Nifty futures attain 22,750. Or e-book loss if Nifty futures fall to 21,900.
But when the contract breaches the assist at 22,000, go brief with stop-loss at 22,250. Guide earnings at 21,500. As a substitute of futures, one can contemplate shopping for Might month-to-month expiry 21,800-put. Exit this when Nifty futures fall to 21,500.
By-product outlook
Futures of each indices at a assist
Choice positioning seems impartial
Contemplate lengthy on futures or name choices
Financial institution Nifty
Financial institution Nifty futures (Might expiry) (47,831) dropped 2.3 per cent final week. However not like Nifty futures, there was no brief build-up. The draw back was restricted because the contract discovered assist at 47,000. It rebounded from this stage on Friday, offering some hope for the bulls.
Whereas 48,080 is the closest resistance, there’s a good probability for Financial institution Nifty futures to transcend this stage and contact 49,000 within the close to time period. That mentioned, if the contract falls beneath the assist at 47,000, it’s more likely to embark on a southward journey, probably in direction of 45,300.
In accordance with the Financial institution Nifty possibility chain, the assist ranges are at 47,500 and 47,000. Then again, resistance might be noticed at 48,000 and 49,000.
Technique: Go lengthy on Financial institution Nifty futures (Might contract) now at round 47,830. Add longs if the value dips to 47,300. Preserve preliminary stop-loss at 46,500. When the contract strikes above 48,200, alter the stop-loss to 47,500. When the value touches 48,750, elevate the stop-loss additional to 48,200. Exit at 49,200.
Alternatively, merchants can go lengthy on the 48000-strike Might month-to-month name possibility now. Liquidate this place on the prevailing possibility premium when the futures hit 49,200. Exit in case Financial institution Nifty futures falls to 46,500.
But when Financial institution Nifty futures decisively breaches the assist at 47,000, exit the longs and brief the contract with a stop-loss at 47,600. Goal might be 45,500. One can contemplate shopping for put choices as a substitute. That’s, purchase 46800-put (Might month-to-month expiry). Exit this selection on the prevailing premium when the futures decline to 45,500.
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