Context and current trend
NIFTY formed higher high higher low formation for consecutive 4 days. It is just below the resistance zone 15880 to 15915. This zone has been tested 4 times so far. This time it may cross it decisively.
Anticipating Thursday
1. Tomorrow is a Thursday expiry. NIFTY is likely to continue upward trend towards 15915 and may break it as well.
2. 'Gap up and consolidate' or 'Gap up and retrace' tomorrow
3. 15750 to 15770 becomes a crucial support zone for this uptrend. The positional bias will be on upside as long as NIFTY is closing above this.
More on levels and timelines
1. Looking at 75 Min chart, clean steady uptrend is visible.
2. It is trending above all key moving averages.
3. It has cleared and closed well above previous resistance of 15760-15780
Open Interest Data
1. 15800 is the level where maximum puts are sold. This level is intact as long as NIFTY is above 15760.
2. 15880, 15920 is resistance zone.
Trade Plan for Thursday
As discussed yesterday, I bought the dip and carrying 15900/16000 CE spread for next expiry.
1. Flat Open within yesterday's range 15810 - 15875, its normal opening. Attempt will be made towards 15880+ No intraday trade in this region
2. Opening with Gap in 15880 - 15920
Check first 15 min candle, if its sustaining without much movement, likely to be flat rangebound expiry where NIFTY may move in narrow range of 15850-15915.
3. Opening with Gap above 15920
Possibility of sharp up move. and volatility during market time
4. If minor gap down below 15810, wait for price action but do not short unless below 15750
Possible option trades
1. Possibility 1 : Short 15750 15800 PE with strict SL of 15760. Risky trade
2. Possibility 2 : Short strangle 15750 and 15950
3. Possibility 3 : Buy 15900 CE SL 16860
Things to remember
1. Expiry day. Don’t engage in the trade unless clear signal. Avoid buying options of same expiry.
2. Check open Interest for managing the trade
3. Follow the price action and trade only near the levels.
4. Check VIX, its expiry sudden moves and two trends possible.
Wish you a great trading day.
NIFTY formed higher high higher low formation for consecutive 4 days. It is just below the resistance zone 15880 to 15915. This zone has been tested 4 times so far. This time it may cross it decisively.
Anticipating Thursday
1. Tomorrow is a Thursday expiry. NIFTY is likely to continue upward trend towards 15915 and may break it as well.
2. 'Gap up and consolidate' or 'Gap up and retrace' tomorrow
3. 15750 to 15770 becomes a crucial support zone for this uptrend. The positional bias will be on upside as long as NIFTY is closing above this.
More on levels and timelines
1. Looking at 75 Min chart, clean steady uptrend is visible.
2. It is trending above all key moving averages.
3. It has cleared and closed well above previous resistance of 15760-15780
Open Interest Data
1. 15800 is the level where maximum puts are sold. This level is intact as long as NIFTY is above 15760.
2. 15880, 15920 is resistance zone.
Trade Plan for Thursday
As discussed yesterday, I bought the dip and carrying 15900/16000 CE spread for next expiry.
1. Flat Open within yesterday's range 15810 - 15875, its normal opening. Attempt will be made towards 15880+ No intraday trade in this region
2. Opening with Gap in 15880 - 15920
Check first 15 min candle, if its sustaining without much movement, likely to be flat rangebound expiry where NIFTY may move in narrow range of 15850-15915.
3. Opening with Gap above 15920
Possibility of sharp up move. and volatility during market time
4. If minor gap down below 15810, wait for price action but do not short unless below 15750
Possible option trades
1. Possibility 1 : Short 15750 15800 PE with strict SL of 15760. Risky trade
2. Possibility 2 : Short strangle 15750 and 15950
3. Possibility 3 : Buy 15900 CE SL 16860
Things to remember
1. Expiry day. Don’t engage in the trade unless clear signal. Avoid buying options of same expiry.
2. Check open Interest for managing the trade
3. Follow the price action and trade only near the levels.
4. Check VIX, its expiry sudden moves and two trends possible.
Wish you a great trading day.