The market is narrowing down the trading activity ahead of the major event that may lead to a huge swing on break
out or break down. One can clearly notice that even the RSI is also hovering above the rising trend line from last
three days that may increase sensitivity in the market in the near term.
For the day, may be due to strong global cues the market may open higher but it should sustain above 4885 levels till
the second half of the trading session. If it fails to do so, then we may expect further sideways movement for the day.
In case the market is able to hold the level 4885 till the second half of the trading session, then it result into heavy
short covering towards the end may be up to 4930/4950.
On the other side in case the market opens higher but if it fails to hold 4830 level in the second half of the trading
session then we may expect sharp sell off towards the end that may even break the level of 4800 and may quickly fall
to 4750 level
In brief, something wild is going to happen and instead of predicting which side? it is better to take the help of
Option instrument. The strategy should be to buy a Call and Put for next few days.
Nifty Strategy: Buy 4900 Call and Buy 4800 Put option for the month March for next few days.
