Market may signal a fresh intermediate uptrend: Rajat Bose
"If you look at the trading activity in the Nifty options segment, that clearly shows that bulls are really charging ahead."
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| Updated: Rajat Bose, rajatkbose.com in an interview with ET Now talks about his outlook on the Nifty.
What is the call on the market right now?
If you look at the trading activity in the Nifty options segment, that clearly shows that bulls are really charging ahead. On the one hand, 11 lakh shares have been added in 5500 put and we feel that more than 4,41,000 shares have been covered in 5600 call for the March series.
That suggests that the option writers are thinking that 5600 would be taken out within this clearing itself. Otherwise they would not have gone for such massive covering and one more thing I would like to point out is that day before the Nifty March PCR was much lower at 1.25 and it shot up yesterday to 1.40 and the March and April Nifty PCR combined has gone up to 1.36.
This is a very heartening sign. Put writers becoming aggressive is a sign of bullishness. At the same time our NSE India VIX has actually gone down by 113 basis points yesterday to close something around 19.84. A reading below 24, VIX is definitely a very bullish sign and if you observe NSE VIX, you will see that they have been falling for the last 3 days suggesting that traders are getting aggressive and it is a clear sign of a short term uptrend brewing and we are in a range bound situation and chances are that we might actually try and test some major resistance zone between 5600 and 5619 today and once we take out 5619 decisively on the upside, a fresh intermediate uptrend may be signalled.
What is the call on the market right now?
If you look at the trading activity in the Nifty options segment, that clearly shows that bulls are really charging ahead. On the one hand, 11 lakh shares have been added in 5500 put and we feel that more than 4,41,000 shares have been covered in 5600 call for the March series.
That suggests that the option writers are thinking that 5600 would be taken out within this clearing itself. Otherwise they would not have gone for such massive covering and one more thing I would like to point out is that day before the Nifty March PCR was much lower at 1.25 and it shot up yesterday to 1.40 and the March and April Nifty PCR combined has gone up to 1.36.
This is a very heartening sign. Put writers becoming aggressive is a sign of bullishness. At the same time our NSE India VIX has actually gone down by 113 basis points yesterday to close something around 19.84. A reading below 24, VIX is definitely a very bullish sign and if you observe NSE VIX, you will see that they have been falling for the last 3 days suggesting that traders are getting aggressive and it is a clear sign of a short term uptrend brewing and we are in a range bound situation and chances are that we might actually try and test some major resistance zone between 5600 and 5619 today and once we take out 5619 decisively on the upside, a fresh intermediate uptrend may be signalled.
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