The trend analysis done using few major support lines on daily chart, we are looked into major support/resistance trend line of market cycle trend, long term and intermediate term. Sensex channel has touched high value for all three channel, on 3rd June Sensex touched high value trend line (Resistance) continuing since 2009 and also touched high value uptrend running since Oct'18 and same for Feb'16. Since than it started downward movement and touched bottom of 1 channel in early July at 11,461 (touching bottom of its up trend continuing since Oct'18.). If it break this 11460 level/ channel it will continue to 11,0000.
Short position can be opened if 11460 level is broken by Nifty.
Trade active
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11460 level is broken by Nifty, I hope you have opened shorts for 11K target
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My analysis still says 11K is not far for nifty...
Short term Nifty next target 11,125, If nifty breaks 11,100 we will see nifty 11,000 and after which we will see upward pullback in this down rally.. As 10,975 is Major Support that's where we will see some buying around 10975 - 11,000 zone..
Trade closed: target reached
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Target 11,010 achieved..
Trade closed: target reached
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We have made 450 point of profit.. Now enjoy profit in retracement .. I published new idea
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Today Nifty has taken support from "support trend line since Feb'16" at 10,877 exactly from where our trendline was but if this support fail to hold the consequences are very bad and nifty will free fall..
Option data for 29 august expiry justifies your view. Highest OI for PE at 11000. So should bounce frm 11000 or atmost from 10950.
areraviteja
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@aruntv2020, If we buy 12000 CE 26 sep 2019 expiry around 25, can we expect target around 100 in 2 months time frame? Your opinion please
aruntv2020
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@areraviteja, Thanks for your message. My opinion is to buy 11000 call of august expiry at CMP for 100% upside. Buy half now and keep some fund to buy it again if market falls another 100 points. Bounce shall be from todays low or from 11k. In worst case from 10950. I am not sure about 12000 call of september. In-the -money options are safer, in my opinion.
thanga6631
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@aruntv2020, sir tom nifty view....11000 call r 11000 put...
aruntv2020
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@thanga6631, Sir, I bought 11000 calls at today around 220. Will buy more if theres a gap down tomorrow. I am a working professional in Dubai, so I can afford if market goes for huge downside. Please buy only if you can afford losses, if happens. I dont like anyone to lose their money because of me. My reason for buying 11000 calls, is highest OI at 11000 put in august expiry, so maximum market can go down till 11000/10975/10950. Thats it. And for the bounce back, even if its only 200 points, ie, till 11300 levels, call will get doubled. Another point, implied volatility(IV) for calls is lower than puts, which indicates further downside is limited.