Market bulls are in charge as the Nifty50 approaches the much awaited 20,000-point level. A lengthy bullish candlestick pattern is formed as the Nifty rises 146 points. Traders predict that the Nifty will surpass 20,000 thanks to FIIs’ ongoing purchases and encouraging option chain data. The Broken-wing Iron Condor and purchase on dips market-anticipation strategies are advised by experts. Analysts advise waiting for consolidation and caution, nonetheless, because of the persistently strong bull trend.
Bulls dominated on the weekly F&O expiry, resulting in yet another record closing day for the market yesterday. This brought the Nifty50 dangerously close to the anticipated critical 20,000-mark on July 20.
The Nifty50 increased 146 points to 19,979 and established a lengthy bullish candlestick pattern on the daily charts, while the BSE Sensex increased 475 points to 67,572. For the sixth session in a row, the index was also seen making higher peaks and higher bottoms. The primary query at this point is whether the Nifty will touch the 20,000 milestone on July 21.
According to the pivot point calculator, the Nifty may find support at 19,821 before moving on to 19,766 and 19,676. 19,999 may serve as a significant area of resistance on the upside, followed by 20,054 and 20,143.
In order for the Index to surpass 20,000 levels tomorrow, according to Raj Deepak Singh, Head of Derivatives Research at ICICI Securities, it is predicted that FIIs would continue to acquire Indian equities. “Short coverage during the weekend before important outcomes should be seen. One should maintain optimism with trail stop losses and ride the trend since there is no call base in sight, Singh continued.
Option chain data reveals that NIFTY is indicating 19,800 and 20,000 levels for the month-end options, according to Santosh Pasi, a derivatives trader and analyst. “We anticipate that the market will reach 20,000 and remain there for a while. The greatest OI is at 20,000 strike, and we don’t anticipate it to go above 20,050,” Pasi continued.
Derivatives strategy recommendation
The Broken Wing Condor Spread is a neutral options trading technique and a variation of the Condor Spread. It is also referred to as a Skip Strike Condor Spread. Simply put, it is a Condor Spread with the risk skewed to one side. When the stock breaks out in either direction, a standard condor spread loses money. You can completely move the risk of one way onto the other by using a Broken Wing Condor Spread. This is helpful if you want to speculate on a stock being flat but are positive that it will only go in one way if it does break out.