Markets have changed. IMHO Nifty is not going to trend like earlier in future. Reason is the introduction of XX50 option strikes since last September. Big boys and institutions will have massive option exposures and they will try to defend these areas with their might.
Earlier with xx00 strikes they allowed the retail guys to play around within 100 points and provide liquidity. Now the play ground has shrunk to 50 odd points within which we have to play around. Volatility is cyclical and may be we are at the lows. But still I feel it may not improve much in future.
Just an observation. May be I am wrong.Would like to know your thoughts.
Earlier with xx00 strikes they allowed the retail guys to play around within 100 points and provide liquidity. Now the play ground has shrunk to 50 odd points within which we have to play around. Volatility is cyclical and may be we are at the lows. But still I feel it may not improve much in future.
Just an observation. May be I am wrong.Would like to know your thoughts.
Regards.