As recommended to take a long position in the Index previously the index has given a breakout on a daily time frame.  Resistance is placed at 17850, once the index is able to close above this the index has a good probability to make a new high.

At 17500 straddle open position was high in the Index and index was not able to cross this level for 2 consecutive days on friday the Index tested 17500 levels many times and on intraday basis the index was able to close above 17500 level and within few min the Index traded till 17700 levels.

The Index is looking strong. The Buyer in the market has been aggressive for the past 2 weeks and has made sellers lose their position in this market.

The India VIX is trading near 19 , the India VIX is showing a move till 16-15. which strengthens the upside move. Selling Option at this level wouldn t be an ideal way in the market.

Buying at the money CE option and selling Far out of the money CE option strategy can be made in the current scenario. Risk Reward would be limited.

Advice : Make a Bull Spread Strategy and wait till expiry.

Nifty 50

Apr 03 2022