Get Ready for a Sharp Drop !! (High probability)

2 lut 2022

I'm expecting a sharp drop today. Around 200 + points from current levels. Key level is 17670, and it needs to be broken.
Reasons:

a. PCR < 1. Nifty has been moving up for past few days, and if it's a strong move so far, they should have sold PUTs aggressively. That didn't happen.
b. Tomorrow's expiry. And one way the Sellers decay time value is via a sharp move. We can't expect a sharp up move now. So, a sharp drop is the only option.


So, brace for a fall gentlemen. It opened gap up above key resistance, and had a touch-and-go with it. The moment 17670 is broken, Nifty might melt.

Alternative View: Nifty continues going up and up, but at a slow and steady pace.

Keep tracking the Put-Call Ratio.

Nifty keeps moving up

Good Luck and STay safe.

Disclaimer
- The view expressed here are my personal views. We're not SEBI registered Analysts.
- Always have a STOP LOSS, particularly when you trade options.
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
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2 lut 2022

Uwaga

Kind of puzzling, but Nifty went up slowly and steadily as per the alternative view. And just like that 17670 resistance meant nothing.

This is the 2nd instance where Nifty raced from 17000 levels towards 18000 levels very quickly, without breaking much sweat.

What's surprising is the lack of PUT selling. Only reason i could think is that they aren't convinced in the the strength of the Rally.

Also, there has been a substantial time decay compared to yesterday. And it's achieved without any sharp down moves here.

2 lut 2022

Uwaga

One reason sellers aren't active is because they're aware it'll be a volatile week due to budget. So, they could be staying away from the markets and chilling on the sides.