Stock markets rallied to their yearly highs with all the key sectoral indices in the green after the US Federal Reserve surprised investors by continuing with its $85 billion stimulus plan.
So should you make use of this current rally to book profits or is there more upside in the offing?
Check out the trading strategies with Chetan Jain, Deputy Manager (Derivatives Desk) - Equity Research, Anand Rathi Financial Services.
Smartinvestor : Markets have been on a bull-run since yesterday. Is there more up side expected from here?
Chetan Jain : Nifty future has gained more then 700 point in this expiry. Post FED Event markets today gap up significantly with drastic fall in INDIAVIX by more then 10%. Now Nifty future has reched to crucial hurdle zone around 6100-6150 levels if it holds these levels then further short covering rally toward life time high territory could not be ruled out whereas if does not hold the current levels then a profit booking dip of 150-200 points may be seen. We are advising Long strongly strategy by buying 6200 call@45 & buy 600 put@35; total cost: 80 ; either side directional move of around 150-200 points may give profit of 50-60 points. Traders can kee p stop of 55 on premiums paid.
Smartinvestor : Are you seeing a huge buildup of long positions on Bank Nifty ahead of the credit policy?
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