indiamarketoutlook

Nifty: Chart set up & trading strategy

Long
NSE:NIFTY   Nifty 50 Index
Nifty

Till the time Nifty is above 15760-15780 on a daily closing basis it might slowly look to crawl up

Trading Strategy

Sell Nifty 15 July expiry 15700 Put option currently around 120

The strategy provides an inbuilt risk cover for a fall in Nifty price up to 15580 till 15 July expiry.

Take care & safe trading...!!!

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
Comment:
Strategy update

15 July expiry

15700 Put option
Last traded price 124.20 ( suggested sell at 120)

Nifty is down 150 points
Yet Loss in strategy is of just 4.2 points.

This is where Strategies come in handy.... Managing risk

Take care
Trade closed: target reached:
Nifty is down from 15833 levels when the trade was initiated.
then how come I have said target reached ?

Well the devil is in the detail.

On charts we had marked red dotted line as the line.

That level was around 15630. Despite the Nifty swings that level was respected to perfection. That was the zone below which risk levels could intensify.

When we devised a trading strategy, We gave ourselves protection on the down side up to 15580 covering up for the risk involved (by selling 15700 put at 120)

Despite the Nifty swings on the down side right up to the red dotted line, our strategy and time factor ensured, we were in control of the situation. The risk part was managed and that is how we ensured we ended up being profitable.

Strategy update
CMP 18.5
Suggested selling at 120

Focus on risk management and increase your chances of winning trades.

Take care & enjoy...!!!

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.