Nifty 50 Movement for past 5 years.
For people involved in monthly expiry trade on Nifty, the below data gives the information on which strike to consider for safe entry and hedge.
From 2016 to 2019, Nifty has moved an average of 1000 points per year.
The highest fall in a month in past years is March 2020 during Corona crisis. Even that is recovering now and Nifty is consolidating.
If Nifty is reaching 12000 by end of December 2020, it is a fair move. So, from August 2020 if Nifty moves 150 points higher every month consistently is a great deal for this year.
Considering Nifty moved 1600 points in last 2 months, this month (August 2020) can be a small correction around 11000.
Best Regards,
B G Nareshkumar
