Market may be under-estimating risks

The Nifty hit another new 52-week high, rising to 8,992, a tiny improvement on the prior value of 8,982. It remains above 8,900 and continues to test resistance between 8,900 and 9,000. A move past 9,000 would probably lead to the all-time high of 9,120 being broken. Foreign portfolio investors (FPIs) have been net positive since the Union Budget. Domestic institutions have started selling in March. Technical trends remain positive across the broad market with advances comfortably beating declines and outperformance in smaller stocks. The retail attitude is positive. FPI buying has eased the dollar down. Rupee treasury yields have also hardened. The Nifty Bank has hit all-time highs and the Bank index is often a front-runner of the broader market. The ‘Bank’ moved to the heights of 21,042 during February. The Financial index has since corrected but could easily swing to a new all-time high, given two strongly trending sessions. A long Nifty Bank (March 30) 19,600p (63), and long (March 30), 21,600c (69), costs roughly 132. This is almost zero-delta with the index at 20,665. Either end of this long strangle could be hit, given three big trending sessions.  Financial Astrology Tips