Nifty future has its upside capped at 500 Level for this January series expiry, but even near 4900 level attracting selling pressure in Nifty future and heavy weight stocks like Reliance, Infosys, TCS, Wipro, etc. Taking the advantage of this selling pressure we would advise traders to Buy Nifty 4900 put options near 104 level for positional targets as 150 and then 185 levels, Also exit this position if nifty future trades above 5000 level. The open interest in Nifty future also increased by 6% this indicates short positions were added in nifty future today. Also 4900 zone has previously acted as strong resistance and even today nifty future was facing hurdles to move towards it. Major news that were released today was the IIP numbers and indicated that core industries saw growth, another event was the Quarterly result of Software giant Infosys, Infosys numbers were inline to the estimates however the stock was trading lower by 6.5%. Reliance industries was major dragger in Nifty. Traders must stay cautious as near term market may turn volatile as short term trends need some consolidation may be 1 or 2 sessions. In this period of consolidation traders must watch the open interest in nifty futures and nifty 5000 call option and nifty 4900 call option. Trading idea discussed here is based on Technical analysis, If you want to learn this call us on +91-99 70 77 77 89.
Free Nifty options analysis: Buy Nifty 4900 put option near 104 level for targets of 155 and 180 level, Stop loss must be placed near 80 level.