Nifty In Extended Third Wave Area - Rakesh Chandra

On an EOD basis we are progressing towards end of extended 3rd up wave. This is called 5th of 3rd wave. It is a war zone for the bulls and bears, and the bears will be the winner. It requires 1-2 days more for the up momentum to cool off. Till this time, we will see sideways movement. Since Nifty has already achieved all targets on a weekly basis, do not expect much upside.

Sell a higher call option of 3750 instead of naked shorting the future; alternatively buy a put and hold. If at some point we see more upside or if stay in range for 1-2 days then take 3500 put option. As a rule, convention says that shorting a future = selling a call option + buying a put option.