Profit Booking In Call Options
India’s benchmark Nifty witnessed bouts of profit booking in Call long options today. Intraday Call option buyers booked their positions around 11122 approx. The 11100 and 11200 strike Call options closed 13% and 17% below their respective high. Despite today’s profit booking, bulls are likely to control the markets in the coming days as the Federal Reserve has announced that it is planning to relax the “stress tests” norms for US Banks. This move will empower US Banks to pay higher dividends or buy back their own shares. It is also an indication that the US Fed is likely to stay away from hiking interest rates any time soon.
Will The Market Give A Correction Tomorrow
Nifty achieved the upside target of 11122 in style today. The index opened 30 points gap up at 1114 approx as the Federal Reserve announced that it would relax the stress test norms for the US Banks. Nifty has closed with a positive bias today, however, markets might witness a brief correction tomorrow. The index might scale up to 11139 if it sustains above tomorrow’s range low. On the other hand, if Nifty slips below tomorrow’s range low, it might scale down to 10990 approx.
Observations In The Hourly Timeframe
In the hourly session, Spot Nifty has closed around 11058 approx. The index is likely to find support around tomorrow’s hourly range low. The nearest upside target for Nifty is around 11110 approx. On the other hand, if Nifty trades below tomorrow’s hourly range low, it might scale down to 10935 approx.
Bank Nifty Options Data