Volatile year end expected

Nifty has witnessed almost 900 points rally from the low this expiry to the high of today. Rally was uninterrupted by bears at any day but it seems game was all over for bulls today. 7720 was my strong resistance on closing basis which has been intact even today but we also have witnessed a strong red candle almost engulfing last entire week. Though we need confirmation which can be obtained only on Fridays close but looking at other factors we can be rest assured that volatility would be at the peak this week.  Technically speaking, we had a gap at 7721 which is now filled and acting as strong resistance. Secondly Fibonacci level was at 7700 and Finally 7700-7600-7500 Puts have witnessed unwinding while 7700-7600 Calls have witnessed write-off. Combining all the factors, it surely seems that we are going to see some extreme volatile profit booking in upcoming days. So now may be traders could take a short view for the April expiry with targets of 7480/ 7350 with a stop loss of 7750.

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