Nifty September futures currently trading around its previous high on 18th Sep 2017 trading. Post making all time high marginally Nifty September contract started trading sideways during Monday trading session. Short covering rally was witnessed in the first hour of trade. Trading Sentiment is holding bullish and the expiry range had shifted higher to 10053-10308.
However Volatility was largely muted and India VIX at 11.4425 down by 2%. Put writers shifted their strikes to 9900PE and 10000PE since the last week. However PCR of 10200 strike is at 0.45 and 10300 strike is at 0.16 indicates a possibility of tighter range bound markets in the coming session with short term resistance building around 10180-10200 range.
From the trading sentiment perspective global markets rallied post the geopolitical tensions eases out. Despite the positive global sentiments and markets largely ignoring negative sentiments short term inventory had went from long to too long which posses a risk in holding longs n the very short term.
Short term supports comes around 10170. Price holding below 10170 on EOD basis brings short term weakness