This market somehow is moving from strength to strength on daily basis. Even the global markets are supporting it completely....FII's are coming out net buyers on almost everyday....Apparently, its seems that we have completely erased all pains and will only move up from hereon.....True that we are in a bull market but that I had already confirmed when we were at 3300 odds....What I am considering now or rather was considering from the last 15-20 days was a decent correction which is still not coming; the major reason being that many people, who were afraid to take long positions previously kept on waiting for corrections to enter. But markets do not give opportunity to all....We have enjoyed all the rallies previously except the last 200 points in Nifty only....
In my last article on 19th September, I had written "I, personally, dont think that this upmove is sustainable, but then markets can always create a new picture in front of us. Obviously, we dont want to miss out such beautiful rallies when individual stocks move up 20% in a day and biggies like SBI going up 70 points daily. Under the circumstances, my personal advice would be to remain hedged at least 50%. Hedging can be done in several ways like buying alternate Nifty futures or going long on stocks with short in Nifty or by selling OTM calls."
The above remains valid still. I would not recommend squaring the NF short positions because if one does so, he/she may not get the chance to build on the position again. Do not lose your position so easily. Rather have specific longs in Pharma which has been the sectorial leader in this 6-months bull rally. Buy the defensives like FMCG and PSU Power. We are getting Nov 5400 calls at 60 odd rupees. You can also start selling these OTM calls and cover your Nifty short MTM with that. The above strategy should work the best. Dont be naked on either side and never lose your position.....
Happy trading!!!
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