indiamarketoutlook

Will Nifty see Year end Dhamaka rally...???

Long
NSE:NIFTY   Nifty 50 Index
Nifty
13749

2 trading sessions earlier, we had highlighted the possibility of Nifty re-testing at least previous highs


Although we did not take any fresh position in Nifty on weekly expiry day, we held on to our positions taken earlier.

Currently
- We observe Nifty moving in boxes
- Will we see a Year end rally now?

No it is not that since we are now just 250 odd points away that we are saying it...

Flashback… on August 04th, 2020, when Nifty was at 11000, this is what we had predicted… Nifty heading towards 14200 odd levels in next 6 months…


This was in the back drop of economy being at a standstill, and hence difficult for any one to even think of 12000. Many felt Nifty might head back lower sub 10000 levels and probably even towards 8000 levels.. It seemed ridiculous at that time, but here we are; 5 months down the line and Nifty very close to it. 😊😊

Click the link above and see how historical price pattern of 2006-2007 in Sensex price (very similar levels… very much similar magnitude of correction… and not much difference in time frame too) helped us envision this movement in Nifty . I am sure the co-relation would amaze you and help you realize the potential of Technical Analysis .

Coming back to our present day…

Chart and Data analysis suggest (for a detailed analysis report of FIIs and Retail participants kindly share your email address in comment below or in private message) there could be support at lower levels

On any dips in Nifty , one may consider selling Nifty 13600 Put option preferably around 60.
Max profit potential Rs 4500/- per lot.

More importantly, the strategy would have an in built loss protection for a fall in price up to 13540 till 31st December 2020.
We would update further on this idea, Monday morning in market hours.

Take care & safe trading…!!!

Wish you a Merry Christmas and a Happy New year…!!!

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Our other ideas this week...

- LIC HSG FIN
- ONGC
- BHEL
- Tata Motors
- Adani power

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
Comment: 9:18am

Nifty 13600 Put is around 30

Nifty 13650 Put is around 40

As per your risk appetite one may consider to sell 13650 Put option
Trade active: In morning at 9:18 am we suggested to consider selling Nifty 13650 Put option around 40

It traded in the 35-40 range and gave ample opportunity to sell till 11:30am.

Once it broke that range on the downside, it struggled to recover and closed the day at 23.60 giving us a decent profit :-)

Happy trading...!!!
Trade closed: target reached: Go on... hit the play button in the above chart and see for yourselves where Nifty ended on December 31, 2020...

Nifty touches 14K mark exactly on 31 December 2020.

Trust you have found the analysis helpful.

I wish you all a very healthy💪💪 and wealthy New Year...!!! 😊

Take care and Best wishes

Comments

I think thereus a double top on hourly time frame and on weekly there is hanging man candle which is somewhat bearish if it crosses 13777.50 then can go long
Reply
🙏🙏 👌
Reply
fantastic analysis,could you tell final target of this bull run till march 21? expecting your reply with eager.
Reply
@ckirtane, thank you very much for the appreciation. Any specific reason to limit ourselves to March 21 for the Bull run??? 😉

We would be entering a crucial phase where we would see the quarterly results coming out in Jan and then the Budget session in Feb. Whether it would be a smooth run or a roller coaster ride from here on... only time will tell that. But as long as 12400 is held on to, there is a strong probability of seeing more upside

There would be corrections of course we might see pullbacks and pause but there after there is a strong probability of markets conquering new highs for the next year and a half... A phase of euphoric rise could be due... before we witness the next big Bear market...
Reply
ckirtane indiamarketoutlook
@indiamarketoutlook, actually i wanted to know whether you have seen any target as you expressed for 14000 six/seven months earlier.thanks for reply.
Reply
rajatjsr@gmail.com pls send me the fii data details. Tha nks I'm advance
Reply
@rajatjsr, Hi Rajat
I have shared the recent report on your mail id. Kindly check the same.
Reply
savitapandey20000 indiamarketoutlook
@indiamarketoutlook, should we long in index options
Reply
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