The Ratio Impact
India’s benchmark Nifty swung around the 11915 mark for the major part of today’s session. The institutions intelligently managed their ratios in Call options by swinging Nifty in a range of 100 points between the high and low of 11965 and 11856 approx. They booked profits in the call ratio every time the market swung up towards yesterday’s high of 11960 and created fresh ones every time the market slipped below 11915. The trump card was today’s range low, which was left untouched, thus Nifty bounced back sharply in the last one hour of trade.
Is The Trend Buy Or Sell?
Today, Nifty has closed with a marginal buy bias. Even if the index opens gap up tomorrow, Nifty must take support of the range low to trigger a fresh rally. Since the institutions are still holding on to their Call ratios and the May contract is just two days to expiry, they might wrap up their Call ratios completely if tomorrow’s range low is broken.
Will Nifty Hit 12000 Again?
The possibility of 12000 and beyond will depend on whether institutional buyers enter the market tomorrow morning. The 3D Delta system is indicating that the market needs fresh funds to achieve 12000 or sustain above it. The institutional buyers might enter if two things turn in their favor tomorrow.
- The binomial neutral price for the Call options is triggered
- Tomorrow’s range low is not broken.