Nifty: Chart set up and trading view

NSE:NIFTY   Nifty 50 Index

CMP 12540

Nifty opens gap up yet another day and is up 75 odd points. So is it time to celebrate or time to be cautious???

Lets look at chart set up

In the chart we observe
- Nifty Breakaway Gap up
- Nifty Continuation Gap up
- today's yet another Gap up opening could potentially turn out to be an Exhaustion Gap

So it would be wise not to get too excited for any fresh entry in Nifty for Long position

Given the set up, One may consider selling
Nifty 12600 Call option
Expiry: 12 Nov
around 55-62 ( CMP 58.5)

The strategy gives protection for a rise in price up to 12658

Take care & safe trading...!!!

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