Nifty held the support zone and broke out from the tight range after a long consolidation and it is expected to trade till 5840-50 levels with a reversal below 5700. Volatility was at the peak and it is expected to come down in the coming days as it is happening just ahead of the event. Thus it would not be a time to create any fresh buying positions in index options as the premiums will come down drastically even if nifty gives a big move either side. As it is a new high in nifty within a month come out of defensive's and it is time to bet on some rate sensitive one's like SBI. The stock is ripe for an upmove ahead of quarterly result and that quick trade should be done before the announcement as the implied volatility in the particular stock options is expected to rise ahead of the big day. Turnover data has not picked up till now and it is expected to increase in the days to come. Thus the strategy would be to start booking long positions in nifty any level above 5800 (if it does so) and move to banking stocks like SBI and DLF. As said in the previous posts both base metals and US markets are giving sharp up moves and this can have a positive impact on nifty. I would like to book the long positions in nifty above 5800+ just because of the heavy premium available in index and that would be a good sign for an index trader. Thus as a trader one should be fast enough in churning the portfolio with the changing market conditions.
