By Gaurav Arora
The March series Nifty futures is currently trading with a premium of around 90 points as compared to 150 odd at the start of the series. For the Index futures, FII Net Index Long exposure is at 40% which was at 35% at the start of series.
The Index is likely to consolidate in the range of 22,000-22,550 before any meaningful move for the remaining part of the month. 22,000-22,100 might be the immediate support and only a decisive close below it might bring in some downside.
VIX for the Nifty is currently at around 14 and likely to remain in the 13 to 18 levels implying a range of around 850 points in a month.
For the Nifty, the IVs for the options remained around 14 levels in yesterday’s trade.
For the Nifty, the VWAP (Volume weighted average price) is around 22450-22500 implying that to be the resistance. Above this, Nifty is to be positively biased for the short term towards 22800-23200.
The ratio between Bank Nifty and Nifty is currently at 2.12, this ratio has a support at 2.06 and resistance near 2.20. We expect Bank Nifty to trade in tandem with Nifty going forward.
Sector-wise, FMCG and Pharma look good in Nifty.
Nifty Short Straddle:-
Sell Nifty 21 Mar 22,350 CE @ 212
Sell Nifty 21 Mar 22,350 PE @ 170
Spread @382, Stop Loss : 435, Target 200.
(Gaurav Arora is a Derivatives Analyst at Religare Broking. Views expressed are the author’s own. Please consult your financial advisor before investing.)