Mumbai, 12 December 2023, (Tradersingh): Today in the financial markets, the Nifty and Bank Nifty are trading cautiously, exhibiting a sideways trend. The cause? It’s Finnifty expiry day, where both Call (CE) and Put (PE) premiums are undergoing decay.
Option traders, take heed – this market presents traps for the unwary. Consider long or short positions only after a confirmed breakout or breakdown, coupled with a proper retest. The market, currently at an all-time high, demands caution in going long, as a sudden correction looms as a possibility.
Decoding the Data
Finnifty’s option chain reflects the prevailing sideways movement, adding complexity to trading decisions. Nifty, Bank Nifty, and Finnifty all share a negative Put-Call Ratio (PCR) of 0.8, indicating a bearish sentiment.
- Market participants should exercise caution, especially with the Finnifty max pain point standing at 21,200.
- With the markets at their peaks, a sudden correction is not out of the realm of possibility.
Traders are advised to scrutinize the market landscape and exercise prudence in their trading strategies. Finnifty’s expiry introduces an additional layer of complexity, demanding careful consideration of risk and reward.
For more in-depth analysis and real-time updates, stay tuned to our Market Updates section. Navigate the market’s twists and turns with confidence!
