Observation - Nifty is trading in downtrend channel - Important levels on the upside are 9105 / 9136 / 9158 - Important levels on the lower side 9044 / 9023 / 8996 / 8941
From positional point of view there is a possibility of Nifty heading towards 9266 / 9320 levels by month end.
Given the view, we would be considering to sell 28 May 9000 Put option in the range of 125-140
Max profit potential Rs 10500/- per lot
Take care & safe trading...!!!
Trade active
⋅
We laid out our trading plan well in advance.
Nifty 28 May 2020 Put option opened at 117.55 & made a high of 129.50 ( giving us opportunity to sell in our range of 125-140)
Cmp 85.
Current profitability 75*( 125-85)= Rs 3000/- per lot.
That's the confidence that analysis can give you. When markets open, it is just execution time without any confusion.
Trade closed manually
⋅
Nifty 9000 Put update cmp 103
despite world mkts down our mkt has done well to stay atop.
Nifty futures ATP for yesterday is 9107.
Might be difficult to get past today.
Hence Consider booking profits. We look to re-enter on Monday
Have gone short in LIC HSG FIN counter
Take care & Safe trading!!!
Comment
⋅
Nifty spot chart
Comment
⋅
Despite other Asian mkts down big time
- Hangseng down 1350 points - Taiwan almost 200 points down,
Nifty was able to defend 8941 (low of 8968) today mentioned above as support & closed between 9023-9044 again levels mentioned as support. So the structure to test 9266-9320 still remains intact.
Monday being holiday, we enjoy the long weekend and trade fresh from Tuesday
Comment
⋅
Just to update LIC Hsg Finance. This was the substitute trade we suggested for the day...
Despite stock being up when recommended to go short, despite RBI Policy news that was to be announced, we ignored the News & simply followed the charts.
So still want to trade on News ???
or start listening to charts directly... If interested in learning, you can get in touch with me.
Why didn't u had a stop loss in mind before u entered the trade.
Prima facie, it does not look Nifty might close below 8800 on 28th. U might have to exit in this one. And start afresh.
Nifty might curb down its volatile movement. So I would not suggest buying options. You will have to wait.
Abhishek0011
⋅
@indiamarketoutlook, I know it was a great mistake... Can I take a contra trade like buying the higher CE option to minimize the losses?
indiamarketoutlook
⋅
@Abhishek0011, Good that u realize ur mistake but don't make a mistake again. Your objective to enter a particular trade should not be thinking of covering previous loss. Rather it should be pertaining to that trade setup. u have to take 1 step at a time. As suggested above, if volatility comes down and market stays range bound for a day or 2 there will be decay in premium there too. You see Buying of options seems tempting and very easy for quick money but it require much more prudence and demands much more alertness. So you need to keep patience and plan your entry well. It's okay to let go 10s of such opportunity. but u need to wait till the time ur risk:: reward ratio is manageable and ur probability is stronger. u need to learn to be much more selective.
For now sleep well. u need to be fresh next week.
Take care... !!!
swosti13
⋅
can bank nifty move upper .
indiamarketoutlook
⋅
@swosti13, if you are looking for a fresh buying idea, then it may not be a good idea. wait for a dip
@swosti13, This could be more to do with options position. Read this article on F&O data analysis when Nifty had fallen 313 points.
That day major Call activity happened at 9000 & 9200 Strike price & I had given 9105 as important level. This is the level where Option writer will not loose much in general. That is precisely where Nifty is currently.
With Nifty had to brought down, and Banks contributing 36% weight-age in Nifty, well the maths is simple.