Nifty: At Lower end of the channel and trading strategy for Mar
Nifty
Did I know the SVB Bank collapse... Absolutely No!
But Technical Analysis gave us a warning signal well before the NEWS. I had shared the analysis well in advance...
More so I have also shared analysis on Banking stocks which were suggesting those were at resistance levels.
The results are in front of you. Nifty is now at the lower end of the channel. Banking stocks have taken resistance exactly at levels mentioned.
What next...
Nifty looks likely to be in down trend. Although risk::reward ratio to short now has a higher risk. Also I'm not expecting a new high any time soon... Nifty could be range bound. For March series I would look at 16600-16750 odd levels as support zone and upside might be capped at 17300-17400.
My trading strategy
Short strangle which keeps me protected for a rise up to 17570 on the upside and 16430 on the lower side. As well as has a 8% profit potential till 29 March 2023.
Trust this would help you Plan your trade.
Focus on managing your risk. If risk is managed you would tend to have a higher chance to stay profitable..!!!
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
Did I know the SVB Bank collapse... Absolutely No!
But Technical Analysis gave us a warning signal well before the NEWS. I had shared the analysis well in advance...
More so I have also shared analysis on Banking stocks which were suggesting those were at resistance levels.
The results are in front of you. Nifty is now at the lower end of the channel. Banking stocks have taken resistance exactly at levels mentioned.
What next...
Nifty looks likely to be in down trend. Although risk::reward ratio to short now has a higher risk. Also I'm not expecting a new high any time soon... Nifty could be range bound. For March series I would look at 16600-16750 odd levels as support zone and upside might be capped at 17300-17400.
My trading strategy
Short strangle which keeps me protected for a rise up to 17570 on the upside and 16430 on the lower side. As well as has a 8% profit potential till 29 March 2023.
Trust this would help you Plan your trade.
Focus on managing your risk. If risk is managed you would tend to have a higher chance to stay profitable..!!!
Take care & safe trading..!!!
Like and Follow
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
Trade closed: target reached:
Short Strangle Strategy update
On 14th March the Short Strangle strategy involved selling 16600 Put and Selling 17400 Call.
Net premium receivable at that time 170 points plus
Currently the Premiums are valued at
Nifty 16600 Put 14
Nifty 17400 Call 9
Net Value 23 points
Despite the Ups and downs (which made situation tough for traders as it required the trader to be on the right side of the trade ) with out much worries in 10 days the strategy has earned
170 - 23 = 147 points * 50 = Rs 7350 per strategy lot
Manage your risk... stay profitable...
Consider to book profits
This Idea is closed.
Happy & safe trading...!!!
On 14th March the Short Strangle strategy involved selling 16600 Put and Selling 17400 Call.
Net premium receivable at that time 170 points plus
Currently the Premiums are valued at
Nifty 16600 Put 14
Nifty 17400 Call 9
Net Value 23 points
Despite the Ups and downs (which made situation tough for traders as it required the trader to be on the right side of the trade ) with out much worries in 10 days the strategy has earned
170 - 23 = 147 points * 50 = Rs 7350 per strategy lot
Manage your risk... stay profitable...
Consider to book profits
This Idea is closed.
Happy & safe trading...!!!
