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Nifty Overview 15th June: strategy Nifty Bear & Bull call spread


  1. US markets recovered some losses on Friday.
  2. But Asian markets are marginally down.
  3. Dow and European Futures are down.
  4. SGX Nifty opened slightly below 9800 but now trading about 80, 90 points lower than Friday's close.
  5. IIP data from China came at 4.4% Vs expected figure of 5%.
  6. But 4.4% is still better than 3.9% last month.
  7. China and Hong Kong markets recovered some losses after this data.
  8. Friday Nifty shot up from the low of 9500 to near 10000.
  9. That was mainly due to short covering.
  10. So markets may consolidate now.
  11. Next wave of short covering will come only when Nifty crosses 10100.
  12. Reliance has done one more deal for JIO investment.
  13. So Reliance will be in focus, but falling Crude is not actually good for Reliance.
  14. Watch Reliance for Rs 1620, if that resistance is taken out, it can go to 1700.
  15. Banking stocks will be in focus after Supreme Court news that the case not about interest, the case is about interest on interest.
  16. That is a big relief for Banking stocks.
  17. FIIs have sold for Rs 1311 crores on Friday in Cash market.
  18. It was DIIs buy for Rs 1945 crores that supported and triggered short covering.
  19. FIIs were net sellers in Cash market for third straight day and that is not good news for bulls.
  20. We have 9 more trading sessions for this expiry and markets may go for consolidation mode.
  21. Nifty may trade between 9700 and 10350 this week.
  22. Beijing closed a market due to Corona Virus, US is having more infections, India too having more and more infections.
  23. Chennai and Delhi seems to be worst affected, Mumbai seems to be topping out.
  24. Since there is not much local news, for next few days, we may just follow Global cues.
  25. Nifty future may trade between 9800 and 10020.
Recommended  strategy If Bullish view exist for Nifty for 18th June expiry:
Nifty Bull call spread:
Buy 150 (2 lots) Nifty  9900 CE 18th June @171
Sell 150 (2 lots) Nifty 10350 CE 18th June @23.85
Level                   max Profit/loss            Min Profit/ loss
10200                       +19244                        +7800
9759                          -17200                          -6500   
Nifty Bear put spread:
Buy 75 (1lot) Nifty  9900 PE 18th June @127
Sell 75 (1 lots) Nifty 9550 PE 18th June @23.31
Volatality25% +-
Level                   max Profit/loss            Min Profit/ loss
9650                     +9122                           +7402
10200                      5475                         -4610

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