Will Nifty take support at previous top levels. Pattern gets invalidates if Nifty closes below gap support zone of 15580 on a weekly closing basis.
Trading strategy for the given set up
One may consider selling Nifty 29 July expiry
15600 Put option
around 200-220
Lot size: 50 (Yes, you have read it correctly... Nifty lot size is changing from next month)
The strategy provides a max profit potential of Rs 10000 - Rs 11000/- per lot and has an approximate 11-12% yield potential till 29 July. More importantly it also provides risk protection for a fall in Nifty price up to 15400-15380 till 29 July expiry giving enough space to adjust / exit if Nifty movement is otherwise
Take care & safe trading...!!!
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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
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Nifty 15600 Put option gave ample opportunity to be sold above 240 levels ( Open and high of 268.10) providing good risk::reward ratio
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On a closing basis Nifty managed to close above the red dash line at 15633 odd levels