NIFTY - Diwali Effect - Covering Some Positions - 10/27/2016

Diwali - The festival of positivity and light has began, which may help tone down the volatility. There is no guarantee of big bounce but with lack of enough participants and superstitious people who like to start the new year with buying something than shorting, it may try to retest 8750. Again 8750 / 8000 resistance level is on focus.
Based on our previous NIFTY trade idea ( of shorting NIFTY near 8750 on the bounce ) we added to our short NIFTY positions via puts and today we have covered majority of short positions after more than 100 points drop from there. But we will be looking to trade NIFTY from the short side on each big bounce.
Wishing Happy Diwali to all.