In my previous Nifty updates I had drawn a Laxman Rekha line in the month of February and that is where Nifty reversed in Feb month end
Now Nifty is back at those levels and Nifty has made a low of 14350 so far today....
What it has done so far is filled up a gap that was formed previously on February 02, 2021.
If it starts sustaining above the 50 day EMA (currently around 14600 odd levels) then we might see Nifty resuming it's uptrend on a longer time horizon
Given the setup, my Strategy for the current set up:
Sell Nifty 29 April expiry Put option Strike Price: 13600 currently around 95
The strategy gives ample risk protection, scope for adjusting as well as decent return potential
Risk factor: For Safe traders, If Nifty sustains below 14250 odd levels for 3 consecutive days exit from strategy
Take care & Safe trading...!!!
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As I finish writing Nifty has gone up a few notch points.
Reason for taking 13600 Put option strike price explained in this chart.
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As suggested in previous analysis, Nifty is re-testing 50 day EMA