Moving forward, Nifty has to hold above 11,820 levels to witness an upmove towards 12,100 while on the downside, key support exists at 11,777-11,750 zones.
Ratio Spreads would give a lot of advantage against the peril of Time Value Decay. The stop loss would be minuscule and over passage of time would outperform single Call.
11,800-11,750 are likely to act as an immediate floor for Nifty50.
The Nifty can continue trading in the 11,790-12,018 range with a positive bias and a level of 12,180 can be expected if the range breaks on the upside.
Mazhar Mohammad of Chartviewindia.in advised traders to remain neutral on long side whereas intraday traders can short below 11,900 and look for a modest target of 11,830.
Mazhar Mohammad of Chartviewindia.in advised traders to remain stock specific by avoiding index bets till Nifty emerges out of the said trading range.
Failure of the Nifty to head to 12,050 could lead to another drop to 11,750 levels, says Shrikant Chouhan of Kotak Securities
Traders should remain neutral by adopting a stock-specific approach, Mazhar Mohammad of Chartviewindia.in has said.
Momentum indicators are yet to witness an overbought state while there are no signs of divergence displayed on the daily scale.
Any minor decline/consolidation could be a buy on dips opportunity for the short term, Nagaraj Shetti of HDFC Securities said
As trade seems to be sideways, Mazhar Mohammad of Chartviewindia.in advises traders to remain neutral on the index.
Traders should remain neutral and focus on stock-specific opportunities, as the index is neither showing strength nor weakness at this juncture, says Mazhar Mohammad of Chartviewindia.in.
The index has given bullish crossover as 100 DMA crossed 200 DMA from below, signaling that the strong bullish momentum will continue in the mid term.
The Nifty has to hold above 11,750 to witness a bounce towards 11,850 while on the downside, support exists at 11,666 then 11,550 levels.
Modified Put Butterfly is a 4-legged strategy where 1 lot of Put close to current underlying level is bought against that 2 lots of lower strike Puts are sold and 1 more lot of Put is bought but closer to the Put sold strike.
The maximum loss would be unlimited if Nifty expires above 12,085.
State Bank of India is trading in an upmove while forming Inverse Head & Shoulders pattern and this pattern will be completed on a close above Rs 206 mark.
Especially, Thursday's high is marked around confluence of Gann numbers, which suggests it's likely to act as a hurdle zone during recovery.
Mazhar Mohammad of Chartviewindia.in advised traders to avoid positional longs but should consider shorting rallies on early signs of weakness.
Traders should avoid long positions unless the Nifty closes above 12,020 levels, Mazhar Mohammad of Chartviewindia.in has said.
As the sector rotation & market breadth has been healthy, one could maintain a combination of long short positions for the rest of the series.
Mazhar Mohammad of Chartviewindia.in advised traders to wait for a breakout in either of the directions and should go long if index trades above 12,000 levels.
Traders should avoid directional bet on the index by shifting focus to stock-specific opportunities, Mazhar Mohammad of Chartviewindia.in has said.
The crucial supports during any correction would be provided by 20-DMA placed at around 11,800 and 5- DMA standing around 11,730, says Shabbir Kayyumi of Narnolia Financial Advisors Ltd. .
Modified Call Butterfly is a 4-legged strategy which is fairly risk averse