It is very hard to predict this week outlook as the big event ahead. The political uncertainty can make volatile the market in a big way. Markets are due for correction and will come only after the disappointment from the election results if they are market friendly then the bullish trend likely to continue.
Hence, I will prefer to go with a long strangle means buying 3800 call and 3500 put aiming the 3370-3950 as the band for this week.
With thanks
Be and make
2 comments:
Dear Be and Make,
Again, it was a good call on Market Outlook. Market moved both way and gave opportunity to take profits at both ends. Ended with very small gains this week. Currently holding light positions.
As posted in my early post (I am just learning technical terms/analysis), I wanted to ask you few questions based on the following:
1. 3754 one of the peaks in previous bull run (SEP 06)
2. 3820 being the 68.1% of Fibonacci (4620 high and 2524 being low)
Do you think the market would sustain above 3800 levels (as most of them expect a huge run up on Monday)? What is your view on market going to 4400 levels near term as discussed by market analysts in TV?
Thanks
Ganapathy
Thanks for your good words, SGX nifty suggest that we are going to hit the circuit to day. Good to see the circuit on the upside after a long time! In my view the current bullishness likely to lift the bourses 20% at least from the current levels and the rally is because of the liquidity instead of the fundamentals from the current levels. So, one should follow the trend instead of looking in to the fundamentals till the 4200-4350 levels nifty. So there is every possibility to go beyond the above said levels because of the liquidity.
So, market will sustain above the 3800 levels in the coming weeks. The main trigger to this call is ‘global events’. After reaching the 4200-4350 levels everybody starts talking about the fundamentals then bourses looks towards the west and global markets. Then they will dictate our direction!
With thanks
Be and make
Post a Comment