Nifty: At 50 day EMA and my trading view
Updated
Nifty
In my last take on Nifty futures when it was at 18687, I had given a target of 18258.
I exited from the trade in Futures very early ( I too am human and can get scared sometimes) and then went with some Call short position for better risk management.
If you see the Nifty Futures chart now...
Nifty futures made a low of 18231 / 18223 and so far has managed to stay above 18258 odd levels on closing basis. (400 plus points... Not bad to get the levels right at least from analysis angle)
Coming to Nifty Spot chart we see 50 day EMA at 18191 and Nifty managed to stay a tad above so still there is hope for the Bulls for a late Santa Claus rally.
Put Call Ratio is at 0.61
Given the set up, and data parameters, I would not consider any short positions for now.
My trading setup:
I would consider taking a bullish stance for the next 1 - 2 week with 18114 / 18080 in Nifty spot as my SL.
If I see things favorable (on the downside Nifty should not breach 18114 -18080 levels), I would consider selling Put options as it provide some margin of safety.
On the upper side if Nifty manages to take out 18244-18262) on hourly chart, I might consider some aggressive bets on the long side as well with 50 day EMA or 18178 as my SL .
Pharma sector showed some promise today and could be the dark horse going forward. Keep a watch on the sector.
Do let me know if you find the analysis and insights helpful.
Like and Follow for more ideas like these...!!!
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- 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
In my last take on Nifty futures when it was at 18687, I had given a target of 18258.
I exited from the trade in Futures very early ( I too am human and can get scared sometimes) and then went with some Call short position for better risk management.
If you see the Nifty Futures chart now...
Nifty futures made a low of 18231 / 18223 and so far has managed to stay above 18258 odd levels on closing basis. (400 plus points... Not bad to get the levels right at least from analysis angle)
Coming to Nifty Spot chart we see 50 day EMA at 18191 and Nifty managed to stay a tad above so still there is hope for the Bulls for a late Santa Claus rally.
Put Call Ratio is at 0.61
Given the set up, and data parameters, I would not consider any short positions for now.
My trading setup:
I would consider taking a bullish stance for the next 1 - 2 week with 18114 / 18080 in Nifty spot as my SL.
If I see things favorable (on the downside Nifty should not breach 18114 -18080 levels), I would consider selling Put options as it provide some margin of safety.
On the upper side if Nifty manages to take out 18244-18262) on hourly chart, I might consider some aggressive bets on the long side as well with 50 day EMA or 18178 as my SL .
Pharma sector showed some promise today and could be the dark horse going forward. Keep a watch on the sector.
Do let me know if you find the analysis and insights helpful.
Like and Follow for more ideas like these...!!!
Take care & safe trading...!!!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- 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
Note
09:34am
Selling Nifty 25 Jan expiry 17800 Put option CMP 140
Note
Nifty at Laxman rekha level.
Bought some call option 29 Dec expiry
Risk management - 18078 in Spot as SL
Note
NiftyOkay Nifty has violated the levels.
Nifty 17800 Put CMP 175
Adjusting my strategy from Plain Vanilla Call short to Short Strangle Strategy.
Have added 25 Jan expiry 18300 Call short position at 266. Net premium receivables 406.
Risk Management: No Loss in strategy if January expiry is anywhere in between 17396 - 18706
Also have added a Bear Call spread strategy in Bank Nifty
Times are difficult so focus on Risk Management. If risk is managed then you increase your chance of staying profitable
Best wishes
Note
Nifty Position updateSold Nifty 17800 Put @140
Sold Nifty 18300 Call @266
Net receivables 406
Updates provided in timeline on real time basis.
Last Traded Price
Nifty 17800 Put 244.75
Nifty 18300 Call 173.90
Total 418.65
Net loss 418.65-406 = 12.65 points per lot
Despite Nifty being roughly 400 points down, we are still in the game.
Technical Analysis helped us identify our risk levels and today morning we were clear with our Plan of Action which helped us manage the situation. Loss in strategy is 12.65 points so far and under control.
Bank Nifty Bear Call Spread strategy is in profit of 50 points per lot on closing basis
Take care & safe trading...!!
Note
Nifty strategy net receivables 406CMP
Nifty 17800 Put 187
Nifty 18300 Call 217.5
Total 404.5
Strategy has come in profit of 1.5 points
Note
Nifty is going up and down...Strategy update:
CMP
Nifty 17800 Put 170
Nifty 18300 Call 192
Total 362
Nifty strategy net receivables when position taken 406
Strategy is in profit of 44 points per lot.🙂
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