As expected after a 400 points UP day on 28th,MARCH NIFTY has gone sideways at highs. I posted on that day as well that these kind of days should be utilize to sell OPTIONS specially CALL OPTIONS.
same setup was there in early MARCH same setup is again available in early APRIL! Lets see again the same PATTERN repeats in APRIL or not? I would think it would!
Technically as i explained earlier that there is no trade for OPTION buyers since late February the ideal trade has to sell monthly OPTIONS with appropriate risk management in place. Now when VIX is approaching 11 that equation of selling OPTIONS is slightly getting more risky!
“CRITICAL LEVELS TO WATCH FOR NIFTY”
levels wise I have given upside tragictry of 22600 with 1% more here and there as maximum stretch which should contain this move at highs. this is not a MARKET which is going to give a runaway move on upside. So better not to get excited with the feeling of fresh highs. As a trader these highs are of no use!
for short term as long as spot stays above 22080-22180 on downside expect current sideways to UP trend to prevail for few more days. TIME wise 4th and 5th,APRIL would be critical CYCLE TURN DATES!
Watch out for DXY and BRENT very closely both are giving breakout which wont go well with RISK assets.
U-S-INDICES are already feeling that pain today lets see whether this time they take down there supports or not. 5120 very critical for S&P,500!
gann,insides 