"Both Nifty and Sensex have closed above the resistance being faced for the past 20 days, thus giving scope for challenging the old highs. However, being the last day of the week, and also june expiry approaching, volatility shall be the order of the day. Inflation data to be released around 12 noon, if doesnot spoil the party, then bulls will have upper had in challenging May closings tomorrow. 20 DSMA shall be the support on intra day dip, if any, on profit booking, buying 4200 call options on declines shall reward substantially, as they are available cheap.
Agressive players can short strangle of 4200 call option available at 81 and 4300 put option at 67 and receive premium of 148, which shall give a profit of Rs.2400 when nifty trades between these two strike prices. The range will be 4152 to 4348; beyond which there will be unlimited loss. Initial margin requirement shall be Rs.60000/- (approx); The return shall be 4% of the investment for a period of 5 days. One can hedge by going long / short of nifty futures when the nifty breaks the range of 4200 and 4300 where the profit is protected, closing the favourable position.
The day's range for Nifty shall be 4215 (Support) and 4295 (Resistance); Sensex shall be 14250 (Support) and 14540 (Resistance)
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