In earlier post very boldly and loudly updated that any close above 8066 may lead to relief rally up to 8192 levels and the darling did all the TGTs on the upper side. During last session the darling witnessed gap up opening above its 20 DMA and managed to hold it on a closing basis which is a positive signal for the bulls at least for the short term. On a daily chart other Technical Indicators too have turned a quite bullish suggesting the short term uptrend. On a weekly chart the darling formed a strong Bullish Engulfing pattern. However it failed to capture its 50 WMA on a closing basis. On a weekly chart the Technical Indicators are still on a bearish zone.
As per Options Chain huge OI has been built up at 8400 & 8500 CE Strikes. At 8300 CE Strike total OI is 44.86 lac whereas OI at 8300 PE Strike is 18.24 lac. Heavy addition was seen at 8200 PE Strike whereas liquidation was witnessed at 8200 CE Strike. 8000 & 8100 PE Strikes have heavy OI. VIX closed down by almost 6%.
So at this juncture it seems that Nifty darling would now be entering multiple resistance zone. 8330-8340 zone may act as very stiff resistance on the upper side. On the downside 8160 may act as very strong support zone for the darling. Since we would be trading in expiry week expect Nifty darling to trade in the broader range of 8130-8330 with highly stock specific actions.
In light of the above view Traders can try Short Strangle Options Strategy.
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