Traders preferred exiting their shorts ahead of budget: Angel Broking
Post sell-off seen in the last couple of sessions, we had a positive start with decent margin as indicated by the SGX Nifty. Soon as the day progressed, buying accelerated and sharp recovery brought index above 10800 mark on the closing basis. Finally, we concluded the preliminary series of calendar year 2019 with the gains of almost half a percent.
Recently, we saw index correcting sharply from the hurdle of 10950-11000 along with decent short formation in future segment. As we have an important event of Interim Budget 2019 lined up tomorrow, traders lightening up their exiting positions. This in turn resulted short covering rally of 1.68% on the expiry day. Rollover in Nifty during the day was hardly 58%, which is certainly very low to its 3-averages. For the coming series, 11000 call and 10700 put option is attracting traders attentions. Looking at the current scenario, we would advise trader avoiding any kind of direction trade in index until it remains in the range of 10700-11000 and rather pick quality stocks that are recovering from the important support zones.”