Option strategy of the day| Nifty IVs expected to fall post result; use Short iron butterfly strategy moneycontrol.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneycontrol.com Daily Mail and Mail on Sunday newspapers.
Nifty surged to a new all-time high of 23,110 before correcting slightly. With support near 22,500, it s expected to trade in a range of 22,500 to 23,000. Analysts recommend a Bull Call Ladder strategy amid capped upside and potential for bounce from lower levels.
The volatility, which reached a two-year high, is likely to remain elevated until the election results, with the Nifty 50 expected to consolidate around the 23,000 mark, experts said.
The Nifty 50 is likely to be rangebound with resistance at 23,100-23,200 and support at 22,800 in the coming sessions, while volatility is expected to be elevated ahead of the Lok Sabha election results.
With the FIIs returning, there are chances now of short covering in the derivatives markets. In the previous weekly expiry, Nifty has seen a sharp short covering above the levels of 22,800 — a sort of double top. Above 22,800 levels, the directional uptrend has been confirmed for the near-term targets of 23,200.