Nifty Gaps to be filled between 15184 (June low) and 18070 (Sep)
In this chart I have highlighted the gaps left by Nifty on its way up from the bottom formed in June (15184) to the top formed in September (18070).
Intraday traders should be cautious and alert when Nifty trades close to these gaps because any breach of the top line of the gap may lead to a sudden drop to the bottom level of the gap.
Options Contract Expiry Days:
Traders should be extra careful on options contract (put/call) expiry days as market makers tend to force/manipulate the index (Nifty) to breach the above gaps.
Especially Gap 2 looks ominous for the upcoming expiry days (Sep 22nd - weekly expiry, Sep 29th - monthly expiry).
This is because the bottom level of Gap 2 is at 16938. So if the top level of Gap 2 is breached be careful if you are planning to take positions at 17,000 hoping for the market to hold 17,000 and bounce up from there.
How many times have I seen the market makers trapping people taking positions at important levels like 17,000 (for e.g. buying calls at 17,000) by taking the market all the way down to the bottom level of the gap!
So people who bought calls at 17,000 hoping for a bounce would be forced to exit their positions when the index suddenly crashes to the bottom level of the gap.
Be Alert, Be Careful, and Good Luck!
Intraday traders should be cautious and alert when Nifty trades close to these gaps because any breach of the top line of the gap may lead to a sudden drop to the bottom level of the gap.
Options Contract Expiry Days:
Traders should be extra careful on options contract (put/call) expiry days as market makers tend to force/manipulate the index (Nifty) to breach the above gaps.
Especially Gap 2 looks ominous for the upcoming expiry days (Sep 22nd - weekly expiry, Sep 29th - monthly expiry).
This is because the bottom level of Gap 2 is at 16938. So if the top level of Gap 2 is breached be careful if you are planning to take positions at 17,000 hoping for the market to hold 17,000 and bounce up from there.
How many times have I seen the market makers trapping people taking positions at important levels like 17,000 (for e.g. buying calls at 17,000) by taking the market all the way down to the bottom level of the gap!
So people who bought calls at 17,000 hoping for a bounce would be forced to exit their positions when the index suddenly crashes to the bottom level of the gap.
Be Alert, Be Careful, and Good Luck!
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