5700 may next floor level for Nifty Futures: Rajat Bose

Rajat Bose, rajatkbose.com in an interview with ET Now talks about market outlook.

What is your call on market?

On Nifty Futures if you look at the two strike prices 5600 and 5700, you see enormous interest among the put writers. Nearly about 27 lakh a units of puts have been freshly written today and as of now the kind of enthusiasm that you see among the put writers, even for 5500 also suggest that put writers have become pretty aggressive. There is some tepid interest in 5700 call writing but 5800 there is some call writing. So at least we can say that the range might be shifting from 5600 to 5700 and 5700 could well become the floor level or rather 5680 would be the floor level and next battle would be fought between 5680 and 5740-5750 kind of range, but around 5740 there could be some supplies coming in.

If Nifty goes beyond 5700, what should Nifty traders do? Should they double up their longs?

Double up the longs, at higher levels especially when you see that it is already close to a 5750. I would say you can pyramid it. If you have created a good base around say 5600-5650 then pyramid it, the position size should be somewhat smaller, not equal value but somewhat smaller, but still you can go long and carry on long as the Nifty maintains above 5680 to 5660 support area that should now be acting as a good support level.