F&O Talk | Nifty facing minor speed bumps amid election jitters; may see consolidation post results: Rahul Ghose of Hedged.in
Nifty ended the month in red, declining by 74 points to close at 22,530. However, since December, the index has been touching new peaks every month. High volatility was experienced due to the election season, the results of which will be declared on Tuesday, June 4.
The week also witnessed high fluctuations as the index closed 2.5% lower on Friday from its all-time high of 23,110 on Monday. Currently, India VIX stands above the 24 mark.
Rahul Ghose, CEO of Hedged.in, interacted with ETMarkets regarding the outlook on Nifty and Bank Nifty ahead of the election outcome. Following are the edited excerpts from the chat:
With the monthly expiry out of the way, where do you see Nifty50 heading in the June series?
The current fall in the Nifty Index is a minor speed bump in the current scheme of things. We expect the Nifty to be above the 23,000 level on the 4th of June/June series which is at least 500 points higher than Friday's close. The crucial level for the Index is not 22,500, but 22,000 is where the maximum number of writers are currently present. Large players are also creating short straddles at the 23,000 level for the June expiry, which is further corroborating this earlier point.
Nifty Bank fell over 1% in the May series. What does the Bank Nifty rollover data suggest for the upcoming series? Will banks likely remain under pressure?
No, the rollover data and the price action on the index suggest that Bank Nifty will not be a laggard anymore. The line in the sand to cross is 50,500. Once this level is taken
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