The markets have now started falling down from the 18000 levels. Once thought to have breached the 17500 levels and with sharp positive movement it has started falling down. The global markets are also showing signs of mild weakness. The news of recession is either factored in, or will be factored. This means we have a possibility of a pause in the market or a huge correction.
When we pause in the markets, it means no further fall or mild rise. We take this as the call for today and see where we land.
Nifty below 17400 will result in further corrections, as we can expect many traders to take profit from the last 15% rally in the market.
Let us go with a Bull put spread and catch the decay in PE
Smrutirekha Bhoi