F&O cues: Till IVs remain above 27, keep your positions hedged

India VIX, the key gauge of market volatility, eased from its earlier highs of 33 and currently traded at 29 levels or so.

So does this indicate a clear uptrend going ahead or is there any caution on that front?

Check out the trading strategies with Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services.

Smartinvestor : Markets have been on an upswing since last week. Do you expect this momentum to continue in the second half of the session?

Chandan Taparia : Yes, Market has seen strong upswing in last two weeks led by buying in all beaten down stock (short covering). Derivatives Data : Put Call Ratio moved up to 1.28, fresh Put writing seen in all strike between 5400 to 5700 strike, Falling volatility from higher levels.

Chandan Taparia : Maximum Call OI was at 5700 strike and after the gap up, unwinding seen, now 5760 is likely to act as an immediate support.

Chandan Taparia : Till it doesnt breaks 5760, momentum is likely to continue towards 5900 levels.

Smartinvestor : Market IVs are still high, so do you expect that the market is going to correct going ahead?

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