Thursday, March 3, 2016

Nifty futures eyes 7,500, but brace for volatility

Experts figured out that volatility may have receded in the recent few sessions, but need to calm further before the indices move up further. "On yesterday, The India VIX fell in last five sessions from 24.82 to 17.50 but went high by 1.7 per-cent. The Nifty-50 was finding sustained supply around the 7,365-7,380 zone. The VIX needs to stabilise below 18 to get into the comfort position. Otherwise, a jump in the fear gauge may again cause a bumpy ride to the indices after the recent surge," said by Market Experts.Click for Free nifty futures tips

India VIX, the fear gauge, suggested likely volatility over the next 30 days. After breaking the crucial resistance level of 7,250 on yesterday, experts hopes that the 7,500 level should be the next target for the 50-pack index.

"The resistance at the 7,250 level thus stands broken with a gap & the overall trajectory is suggesting a likely further uptrend from here on, possibly towards the 7,500 mark in the up-coming few weeks.

At present, Support is likely to be strong in case of a drop towards the 7,250-7,220 range. Trading over the past three days suggest an impulse-like uptrend (Elliott wave theory), which suggest increasing likelihood that a short-term bottom may be in place for the Nifty-50," said by Mr.Siddhartha Khemka.