US stocks on Friday rose as the stress test reveals signs of economic recovery, and US job data also suggesting the worst is over for banks. Majority of the banks closed higher.
In the domestic market nifty close at 3620 and is still above the 19 day simple moving average of 3545 and the key support at 3545. Nifty may open with a gap and will try to break 3720 levels barrier. If so we may see further uptrend.
As we have 5 more working days ahead of election results declaration, one should reduce carry over positions and add more puts of Nifty or should create more hedge positions. This advise is partly due to overbought situation of Nifty.
If we use probability at this juncture the probability of Nifty to move above 3832 would be 30% and probability of Nifty to move below 3437 would be 25%.
