Nifty Spot is currently trading around 8636 levels and so far nifty had traveled roughly 1800 points from Feb 2016 low of 6825. Intermediate Resistance is coming around 8635 and one can expect some consolidation around this zone for some times. Price could travel back and forth around this zone and could still remains in the range between 8450-8700 for the first week. However strong price push and close above 8700 suggests that we are more likely to test 9000 back again for this series.
Since FEB 2016 momentum traders are coming and buying every break which indicates that they could continue doing this for some more time. India VIX is just above 15 handle indicating that lower volatility in the markets where the fear is totally out of the market.
Open Interest Range
Open Interest Suggest that Expiry range is anywhere between 8500-9000. So far call writers are showing interest in writing 9000CE and put writers at 8500PE strike prices. However the numbers are so dynamic and could change with respect to time.
Trend following longs in futures is one of the preferred strategy for this month.
The post Will Nifty hit 9000 this August 2016? appeared first on Marketcalls.