Rollover data from JM Financial shows that Nifty rollovers were at 46 percent with a 0.8 roll cost, compared to 52 percent in the last series, indicating unwinding of long positions. Bank Nifty rollovers were 42 percent with a 0.9 roll cost, compared to 51 percent in the last series, indicating long unwinding.
Chandan Taparia advises traders to hedge positions. One can initiate a bull call spread on the Nifty by buying a 21,500 call and selling a 22,200 call to play the swings of a 700-point upside by paying a nominal margin and a lesser premium amount, he says
Nifty formed a neutral candlestick at the bottom, reflecting indecisiveness among buyers and sellers. Crucial support is positioned at 21,500–21,400, while resistance is situated at 21,800–21,850
In Bank Nifty weekly closing today is important. As per experts, if it is above 46500, then some respite can be seen in the next week. However, if it closes below 45500 today, it will open gates for more downside, and simultaneously, Bank nifty can drag down markets.