Nifty futures has turned bearish last week and since the confirmation of this trend we are looking for selling in the index futures especially nifty futures august series, So this opportunity can also be taken by the nifty options traders, So we advice traders to buy nifty 5400 put option near 72 level for a weekly targets as 92 and 109 levels, It is also recommended to place a stop loss near 66 level. In near term, we may see strong selling coming in nifty futures below 5480 level. This position is completely based on technical analysis on nifty futures. Taking a look at open interest data we see that long positions has been build in nifty 5400 put also call writing was witnessed in nifty 5600 call options strikes. This can be very good indicator for taking long positions in nifty 5400 put options. Also the charts of nifty futures states that the recent fall in nifty was very strong as volumes has increased sharply in last 5 trading sessions. This selling may pause near 5422 level and after trading below this level we see a very strong selling pulling markets near 5270 level of past.
Nifty Options Recommendation:
Buy Nifty 5400 put options near 72 for targets 93 and 109 levels. Place stop loss orders below 66 level or exit this call option if Nifty futures trades or close above 5503 level.