Nifty: Wishing u all a Happy new Year & 2021 1st week outlook
Updated
Nifty
Observations:
- Nifty is currently in bullish territory
- Multiple potential support areas provided by Yellow Line, Green trend line dark blue line
- Risk of Nifty trying to test the 13813 – 13765 unfilled gap zone
- we see a strong rollover of 78% in Index Futures Position
- FIIs are Net 75% Long
Important levels for January 01, 2021
Important support levels : 13935 / 13904 / 13882 / 13829
Important levels on the upside : 14036 / 14063 / 14085 / 14129
Strategy for January 7, 2020 weekly expiry
- Given the chart set up and data analysis, one may consider selling Nifty 13800 Put Option between 60-80 (Closing Price 64.75)
- Max profit potential in strategy Rs 4500/- to Rs 6000/- per lot till January 07, 2021
- More importantly, the strategy has an in built loss protection for a fall up to 13740-13720 till Jan 7, 2021
Any trading decision should be taken after assessing your risk management and if you are comfortable with the risk involved as against the reward potential it has.
Take care & safe trading...!!!
Hit the Like button / comment below if you find it useful
Follow for more such ideas
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
Observations:
- Nifty is currently in bullish territory
- Multiple potential support areas provided by Yellow Line, Green trend line dark blue line
- Risk of Nifty trying to test the 13813 – 13765 unfilled gap zone
- we see a strong rollover of 78% in Index Futures Position
- FIIs are Net 75% Long
Important levels for January 01, 2021
Important support levels : 13935 / 13904 / 13882 / 13829
Important levels on the upside : 14036 / 14063 / 14085 / 14129
Strategy for January 7, 2020 weekly expiry
- Given the chart set up and data analysis, one may consider selling Nifty 13800 Put Option between 60-80 (Closing Price 64.75)
- Max profit potential in strategy Rs 4500/- to Rs 6000/- per lot till January 07, 2021
- More importantly, the strategy has an in built loss protection for a fall up to 13740-13720 till Jan 7, 2021
Any trading decision should be taken after assessing your risk management and if you are comfortable with the risk involved as against the reward potential it has.
Take care & safe trading...!!!
Hit the Like button / comment below if you find it useful
Follow for more such ideas
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 active
Nifty 13800 Put opened at 65.90 made a high of 70.15giving ample opportunity to sell between 60-80
CMP 43
Trade active
Today was a day of consolidation. Both Call & Put options closed in negative territory... if you are looking to understand why it happened, just look at the Volatility index... It cooled off by 7.27%
Plus there is a time decay for Saturday and Sunday....
Strategy Update
Our strategy to sell Nifty 13800 Put option between 60-80 works well. It gave ample opportunity to sell above 60 and has closed the day in profit for Option sellers at 35.05
Note
Nifty 1409813800 Put option
CMP 16
Consider selling 14200 Call option
cmp 48
Note
13800 Put option updateSold at 65
CMP 3.15
14200 Call option Sold at 45
CMP 32
The strategy is in profit of Rs 5613/-
Happy trading...!!!
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Disclaimer
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