Indian markets traded volatile with 50-share Nifty hovering close to 5,830 levels.
India VIX, a key measure of market anxiousness, witnessed a spike as sentiments remained edgy ahead of the Fed policy decision and RBI credit policy later this week.
Amid such a volatile scenario, what strategy should one opt for and stay protected from market jitters?
Check out the trading strategies with Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services.
Smartinvestor : If Nifty breaks above 6,000 levels in next couple of sessions then would it be wise to build fresh long positions?
Chandan Taparia : Nifty has strong hurddle around 5955-5978 levels, if breaks this zone then next leg of rally may be seen in the market which may take it to 6100-6150 levels.
Chandan Taparia : If sustains above 5955-5978 then better to trade with 6100 or 6200 strike call to play the move with less risk.
Smartinvestor : Do you expect significant spike in India VIX this week ahead of raft of events?
Chandan Taparia : Yes, India VIX may spike befor the major event of FEB meet and RBI policy but after that it may decline sharply.
Chandan Taparia : Till VIX doesnt cool off below 27, keep the position hedge as market risk is rising.
Smartinvestor : Are there any long positions that one can take on Bank Nifty ahead of the credit policy?
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