The article discusses the current market trends and provides a summary of the news and insights from Ravi Singh, Senior Vice President of Retail Research at Religare Broking Limited. According to Singh, the Nifty and Bank Nifty experienced a sharp decline last week, with the Nifty closing down 2.5% and the Bank Nifty down 4.42%. The article notes that the bias remains “sell on rise” for the weekly expiry of the January series, suggesting that traders should maintain a bearish stance, anticipating further downside.
For the Nifty, the article highlights the concentration of Open Interest (OI) at strikes 23,500 and 23,000, indicating potential support and resistance levels. The author also identifies the trading range for the index as 22,700 to 23,700, with strong resistance expected above 23,300-23,500 and immediate support around 23,050-22,800. For Bank Nifty, the article notes that the index is expected to trade within a range of 47,700 to 49,500, with significant resistance at 48,900-49,400 and immediate support between 48,400-48,000.
The article also provides a trading strategy for the week, recommending a “Nifty short strangle” strategy, which involves selling a put option at 23,000 and a call option at 23,500. The author sets a stop-loss at 82 points and aims to target a profit of 5 points by the end of the week.
Overall, the article provides a bearish outlook for the market, suggesting that traders should maintain a cautious stance and consider the “sell on rise” strategy. The author emphasizes the importance of setting correct expectations and risk management while trading in the markets.