Market Outlook — India
What’s on the cards as Nifty inches towards all-time high!
Can someone predict or time the market?
Most people will say “No” and boldly claim that none can do it. Why not give it a try and post what you see from the charts?
So, here is my inference on NIFTY 50.
13-Jan-2022:
We are about 2% below the NIFTY all-time high price at writing. Most options traders will close their call positions as we move closer to the all-time high price, acting as a resistance.
Some aggressive traders may open a put or short the index, hoping the resistance stays valid.
While investors do not care about all-time highs, closing or covering their positions for traders is highly time-sensitive. Note that traders generally close positions as we move towards Thursdays and Fridays. This could also add to the market volatility.
Will the index come down or keep going high?
Let’s look at the CBOE Volatility Index or VIX for NIFTY:
