Nifty 50 IndexShort
Nifty: Budget time and chart set up
Updated
Nifty
Chart set up
- In the last 2 days Nifty has closed in positive territory, however it has found it difficult to close above 50% of last red candlestick which comes at 17740 odd levels
- a lot of resistance between 17740-18140
- on the lower side Nifty has a risk of falling towards 17331 / 17188 / 17096 odd levels
Derivative Data
- FIIs have gone in to the Budget day with negative bias
My view
Given the data and chart set up, I'm not too optimistic about the reaction to Budget announcement.
Trading strategy
I would be playing this market defensively.
- Trade with low capital
- Reduce Long positions
- Take calculative short positions which would have inbuilt protection till 18250 odd levels
Trust you would find the analysis and insights helpful.
Take care and play safe
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Chart set up
- In the last 2 days Nifty has closed in positive territory, however it has found it difficult to close above 50% of last red candlestick which comes at 17740 odd levels
- a lot of resistance between 17740-18140
- on the lower side Nifty has a risk of falling towards 17331 / 17188 / 17096 odd levels
Derivative Data
- FIIs have gone in to the Budget day with negative bias
My view
Given the data and chart set up, I'm not too optimistic about the reaction to Budget announcement.
Trading strategy
I would be playing this market defensively.
- Trade with low capital
- Reduce Long positions
- Take calculative short positions which would have inbuilt protection till 18250 odd levels
Trust you would find the analysis and insights helpful.
Take care and play safe
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
Note
Sold 18200 Call option
Bought 18500 Call option
Note
I had already written that reaction to Budget may not be that great.
Thats what we have seen. Nifty has respected levels identified with help of Technical Analysis to perfection.
On the upside Nifty has respected the upper resistance level. We also suggested taking a short at those levels.
On the lower side I had given level of 17331 and Nifty made a low of 17353.
What do you want... Don't expect to be spoon fed even after this
Hope the analysis has helped you guys...
Many stocks have taken big hits today... That is why I had suggested to stay light and don't get too much carried away with NEWS...
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Disclaimer
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