Nifty futures has shown a strong downtrend and we are now extremely bearish as technical and fundamentals both are suggesting to enter short positions at current market scenario. This may result in fresh short buildup at every up move, pulling nifty towards 5402 and then 5279 levels. As nifty is now strongly heading downwards targeting the 5279 zone, we expect nifty to break 5400 levels soon in near term, hence selling will pull the broader markets to lower level, targeting the 5275 level. So looking this as a good trading opportunity we recommend to start accumulating nifty 5400 put near 56 level for target of 75 and 83. A strong downward momentum is expected once again nifty future starts trading below 5448 level today. Also the near term range remains as 5570 – 5370 levels.
Nifty Options Recommendation: Buy Nifty 5400 put near 56 for targets 75 and 83. Keep stop loss near 48 level or exit this call option if Nifty futures seems to trade/close above 5505 level.