Nifty “Gotala”

Nifty has given a strong weekly move of almost 650 points from the day of the budget to todays opening price which marked high at 7505. Again PSU banks rallied and out-performed but at last it seemed rally was a bit exhausted. After a non-stop rally of 600 points in one week, am bit looking for Shorting opportunities. If you look at Derivative date, 7500-7600-7700 calls saw a huge writing through the day. While a Hanging man on Daily charts displays that traders are indecisive of the move from such a crucial resistance. So sentiments are strong for the rally but options are suggesting a pause. Now lets see who wins the match. If we see a negative opening on Tuesday and couldnt sustain above today’s high then surely we are receiving my target on downside of 7260 mentioned in Nifty Reserve yesterday. Overall i would sell on rise for rest of the expiry because there aint any good reason for non-stop rally to 7700.

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