Equity-Earningz
Short

Short Nifty Risk/Reward 1:5 | The Budget Short Squeeze is Over

NSE:NIFTY   Nifty 50 Index
Short Nifty 12025 - Stop-loss 12162 - Target 11340
Risk/Reward 1:5

We have often seen the Market making big moves to the opposite side of an unfavorable event. The Rally after so-called disappointing Budget is such an example. The majority of traders considered the Budget as the trigger for the further downside. But Market rallied taking support at 200 SMA at 11630 to 12160. Those Who shorted on the budget day market didn't give a chance to cover short and rallied more than 500 points.

Nifty and Banknifty Weekly option is highly traded instruments. A lot of traders buy puts and write calls in weekly expiry. But The Weekly expiry after the budget was not favorable for put buyers and short sellers. They got squeezed in weekly expiry after the budget.

Market Rallied till the weekly expiry and after that giving up gains on Friday and Today, suggesting short squeeze is done.






Trade active
Trade closed: stop reached: Gap up and Stopped Out

Comments

STOP LOSS HIT
Reply
@akshay7590, Yes Bro Gap-Up and stopped Out. And my stops hit more often than my target.
Reply
CoolTrader7890 Equity-Earningz
@Equity-Earningz, so wats u r view on nifty morr coming up or still bearish bro....
Reply
Equity-Earningz CoolTrader7890
@CoolTrader7890, View is still bearish, But and next shorting opportunity is around 12217 +/- levels, a budget week high. Observing how price behaves to initiate a position accordingly at that level. If that level is reached in a hurry or in an impulsive manner then no shorting at that level.
Reply
CoolTrader7890 Equity-Earningz
@Equity-Earningz, ok bro thank you will wait to short then...
Reply
Equity-Earningz CoolTrader7890
@CoolTrader7890, Yes, exactly.
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april 12000 CE@ 250 nifty option is good to buy for postional
Reply
Equity-Earningz CoolTrader7890
@CoolTrader7890, Okay, If you are bullish you can buy but keep a close watch on time decay. I am not bullish for now. At-least not until the stop-loss is triggered at 12160. If stop-loss is triggered then it will a continuation of the up move started a day after the budget.
Reply
CoolTrader7890 CoolTrader7890
@CoolTrader7890, oh sorry bro i wrote woring its PE not ce i am bearish too..
+1 Reply
Equity-Earningz CoolTrader7890
@CoolTrader7890, To Errr, is Human, lol. But in April we will have results, So you never know a few large-cap posting positive surprises and nifty can easily move up in mid-April. So the Trading in March expiry is a batter then April.
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