Monday morning and start of an important week. First time ever am writing this post from the beautiful kodaikanal. A holiday for me but not for the markets.
The big fundamental this week is the monetary policy of RBI and that could decide the course of markets this week. The big positive on Saturday was the tax reforms passed by US Senate and that seems to be having a positive impact on the global markets. Dow futures are up over 200 points at this moment and most of Asia is in green.
Futures and Options!
On derivatives front it’s looking very bearish. There has been a massive short positions built on the call side at 10400, 10300, 10200 calls. That is a big cause of concern and 10200 call has premium of 120 rupees now will act as huge resistance. But that comes at 10320. On the put side there was a massive put shorting seen at 10000 put and at 100 rupees premium 9900 will offer as a support. In futures market also the bearish trend continues. The net short positions in Nifty futures which were at 45% on Friday morning is now at 51%. That means market is net short at this moment for the first time in this year.
What is the Nifty call for the day?
Nifty will open slightly positive around 10150 levels. Carefully wait and watch. If there is no selling and if it doesn’t drop below 10140 by mid day then take a long position. Do not go for short positions now. Even if money can be made it’s not safe. The long position should be taken above 10140 and if nifty stays below then avoid taking any positions and stay away from the market for today.