TECHNICAL CUES-----nifty is trading in a rectangle of 3530-3720 since 8 trading days.
---before that nifty was trading in a rectangle of 3300-3520 for 13 trading days.
---breakout from rectangle(range bound trading) gives excellent trading opportunity.
CUES-
--Nifty May future premium increased to 10 points so cost of carry increased.
--Nifty open interest increased by 7 lacs suggests long addition. (Total OI now at 3.90 cr)
--3500 puts had open interest of 40 lacs and 3800 calls had open interest of 41 lacs, so 3500 and 3800 will be important levels to watch for.
--India VIX closed at 51.25, increased by 1% suggests instability.
--US markets closed in green.
--Asian markets trading positive.
--Sgx nifty trading at 3645. (up 33)
--Positional strategy for nifty—
---IDEAL STRATEGY—NEUTRAL.
---CLOSING STOPLOSS FOR LONG—3561.
---CLOSING STOPLOSS FOR SHORT—3678.
