India’s benchmark Nifty witnessed a formidable rally of 145 points in today’s session and scaled up to 11100 intraday. The bulls took control of the market around 10987 approx. today. Markets are likely to witness volatility tomorrow as the RBI policy is scheduled at 11:45 am. While analysts are expecting RBI to maintain a neutral stance tomorrow, option premiums are indicating that Nifty has priced in the possibility of a 25-bps cut in the repo rates. Going forward, Nifty might witness an upside swing if the RBI softens its stance and the market trades above tomorrow’s range high. The nearest upside target for the index is around 11159 approx.
The Outlook for 7th February 2019
Nifty Daily Chart Levels
In today’s session, Nifty Future opened 30 points gap up at 10986 approx and achieved the upside target of 11034 in the first 30 mins of trade. The bulls took control of the market around 10987 approx. Option premiums are indicating that Nifty has priced in the possibility of a dovish stance or a 25-bps cut in the repo rates. Going forward, Nifty is likely to witness swing moves tomorrow as the RBI credit policy has been scheduled at 11:45 am. If the index trades above tomorrow’s range high, it will trigger an upside swing till 11159 approx. On the other hand, if the RBI hardens its stance and Nifty breaks the range low, it might scale down to 10988 approx.
Nifty Hourly Chart Levels
In the hourly session, Spot Nifty has closed around 11062 approx. The index is likely to witness swing moves tomorrow. If Nifty trades above the range high, it is likely to scale up to 11105 approx. On the other hand, if Nifty trades below, tomorrow’s range low, it will scale down to 10945 approx.
Bank Nifty Options Data
SELF LEARNING GUIDE
How to calculate the“Range”of Nifty
Calculate Delta Neutral zones for the next trading day using “Black Scholes Model”
What is the Black Scholes Model?
The Black Scholes model is a model of price variation over time of financial instruments. The model assumes the price of heavily traded assets follows a geometric Brownian motion with constant drift and volatility. When applied to options, the model incorporates the constant price variation, the time value of money, the option’s strike price, and the time to the options expiry.