Here we go...
1.Global rally cannot be endless. There has to be a reversal at some point. Its only a matter of time. In my opinion this month(max next month) will be the end of the game for US/global equities. Our market has got disconnected from the global trend and in any case will under-perform. In case US markets correct 25-30% from its peak which eventually will happen, I expect Nifty to at least correct 35-40%. This will obviously happen gradually.
2. IMO, 5880 will be an ideal level to start shorting if it is seen. 5880-5950 is an excellent level to accumulate shorts.
3. I don't trade options except in extreme cases wherein I use it for hedging. I think other members who are experts in trading options will help you out with this one.
1.Global rally cannot be endless. There has to be a reversal at some point. Its only a matter of time. In my opinion this month(max next month) will be the end of the game for US/global equities. Our market has got disconnected from the global trend and in any case will under-perform. In case US markets correct 25-30% from its peak which eventually will happen, I expect Nifty to at least correct 35-40%. This will obviously happen gradually.
2. IMO, 5880 will be an ideal level to start shorting if it is seen. 5880-5950 is an excellent level to accumulate shorts.
3. I don't trade options except in extreme cases wherein I use it for hedging. I think other members who are experts in trading options will help you out with this one.
But as I will be buying naked puts, I want to be really thorough.
Do you see the rally fizzling out in April itself? And do you see a significant decline in May (Sell in May, And Go Away).
Are you adding to your shorts right now?
Cheers.