Context and current trend
Reversal day on Monday. That means market opened gap up above high of Friday, but sold of sharply in the middle of the day. But this sell off could not break the lower boundary of the range. Its bearish but need to break below 15650.
Anticipating Tuesday
Expect for trend continuation or consolidation. Unless NIFTY crosses 15780, there is no trade on bullish side.
More on levels and timelines
1. Price structure does not change much. There is still a range 15630 - 15930.
2. The resistance of 15760-15780 is stronger, so if NIFTY is in short term down move, it should not be coming at this level.
3. The support is at 15600-15610. And then 15550.
Open Interest Data
1. Overall, today's morning up move was used to exit the short put positions.
2. It was also used to create fresh shorts at 15800 + strikes.
3. 15850 is likely to be a strong resistance
Trade Plan for Monday
1. If NIFTY opens in the range 15650 to 15780, wait for range to develop. It could be another rangebound day. Trade on the side of the breakout.
2. If NIFTY opens higher above 15780, strong short covering move possible. If it opens higher and sustains, which could cause strong rally towards 15840.
3. If NIFTY opens gap down below 15650, sell for target levels 15600
4. For opening out of 15650 - 15850, price action and market condition needs to be seen again.
Possible option trades
1. No trade possible.
2. Wait for first 15 Mins, based on price action 15800 CE for target of 1850 SL 15770
Or Sell 15700 PE
3. Try to sell as near as 15650, and hold with SL 15730.
For tomorrow, I don’t have a clear bias, lot depends on opening. Considering NIFTY positions are very much skewed, if NIFTY opens gap up, it may continue to trend higher.
Reversal day on Monday. That means market opened gap up above high of Friday, but sold of sharply in the middle of the day. But this sell off could not break the lower boundary of the range. Its bearish but need to break below 15650.
Anticipating Tuesday
Expect for trend continuation or consolidation. Unless NIFTY crosses 15780, there is no trade on bullish side.
More on levels and timelines
1. Price structure does not change much. There is still a range 15630 - 15930.
2. The resistance of 15760-15780 is stronger, so if NIFTY is in short term down move, it should not be coming at this level.
3. The support is at 15600-15610. And then 15550.
Open Interest Data
1. Overall, today's morning up move was used to exit the short put positions.
2. It was also used to create fresh shorts at 15800 + strikes.
3. 15850 is likely to be a strong resistance
Trade Plan for Monday
1. If NIFTY opens in the range 15650 to 15780, wait for range to develop. It could be another rangebound day. Trade on the side of the breakout.
2. If NIFTY opens higher above 15780, strong short covering move possible. If it opens higher and sustains, which could cause strong rally towards 15840.
3. If NIFTY opens gap down below 15650, sell for target levels 15600
4. For opening out of 15650 - 15850, price action and market condition needs to be seen again.
Possible option trades
1. No trade possible.
2. Wait for first 15 Mins, based on price action 15800 CE for target of 1850 SL 15770
Or Sell 15700 PE
3. Try to sell as near as 15650, and hold with SL 15730.
For tomorrow, I don’t have a clear bias, lot depends on opening. Considering NIFTY positions are very much skewed, if NIFTY opens gap up, it may continue to trend higher.