Nifty has seen strong move by more than 400 points and made a new record high of 7563 levels. We are observing strong momentum but traders are advised to reduce position to buy it again on declines. Now previous high 7200 is likely to act as a support zone.
Bank Nifty moved by 10% during the session as it crossed immediate hurdle of 14600 zone. Call unwinding seen in 7000 to 7500 strike but oi is intact at 7600 strike which indicates now traders would force to remain below 7600 levels.
India VIX fell 32% from 36.76 to 25 levels and now option price are fairly priced and traders are advise to use option for further trading. In this series, Nifty is up by aroud 10% and far away from its monthly vwap (Volume Weighted Average Price) so now expiry would be more of momentum and volatility may spike in expiry week.
