INSUBCONTINENT EXCLUSIVE:
By
Anand JamesWhere are We The Nifty is within touching distance of the 100 DMA of 10,958, having surged 4.7 per cent in November, or over
7 per cent for futures on expiry-to-expiry basis
This rally has now retraced 50 per cent of the Aug-Oct fall that had initially put the long-term uptrend in doubt
rollovers above 70 per cent from sub-6 month averages prevailing until the last day
momentum.
What is in Store Straddles are pricing in a 400-point trading range, which is not unusual given the several event risks lined up
ahead.
The 100 DMA of 10,958 should prompt a pause or a turn lower, but such dips are less expected to slip beyond 10,750/600, for now
The options volatility skew projects a nearterm objective of 11,500, with interim technical resistance levels of 11,065 and 11,150.
What you
Could Do: Prepare for a wider trading range
The midcap index hints at coming out of the subdued ranges, and see strong moves
Banks are likely to make larger strides, but are best played on dips initially.
