This was the most low volatile expiry I have seen in recent times. Markets are trading in a range of roughly 100 - 130 points. 4770/4800 on downside are the key support levels & 4920/4950 are the levels to watch out for on Upside moves.
As you see in charts, there is a clear triangle formation there. The red line is a line joining all key resistances and the purple line is the line joining all key supports.
Traders are requested to stay calm and dont panic while the budget is announced and wait for breakout or breakdown confirmations, TILL THEN DONT TRADE AGGRESIVELY.
People who have a view that budget will be a non-event can go for Short strangle strategy :
Short 5100 CE at 55 rs and Short 4500 PE at 45 rs. ( Premium received 100 rs, if markets stay in range then you can 100 rs/lot )
People who have a view that budget will give 3-4% fast moves on Index can go for Long strangle strategy:
Long 5000 CE at 90 and Long 4700 PE at 90 ( If markets give 3-4% moves then you can earn using this starategy)
Have a nice trading day
Regards
Ankit
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