Nifty after consolidating for 33 days gave a decisive breakout above 15900-15950 levels from where we have seen a decent trending move.
During this entire rise nifty has respected channel line shown in the charts on manier occassion there by providing us future potential reversal points.
Today it seems like nifty finally decided to change it's direction of making higher high's and higher low's.We have seen a decisive channel break along with break of previous pivot low's of 18050.A significant put was written on 18000 strike price which got taken out in today's trading session.
Going ahead it feels like nifty will be sell on rise instead of buy on dips.Short selling is not advised right now at current levels,instead one should wait for a bounce near red channel upper line(right now coming around 18200 levels), which can provide better risk reward for short selling.On the downside support lies around 17250-17300
Trade Set-up criteria
1)Look for reversal candle near upper channel line.
2)Wait for the follow through in the next candle meaning low's of reversal candle should be breached in the next candle and it should close below reversal candles low(If the next candle is inside candle then ignore that candle and consider the next candle).This is called bar reversal entry.
3)Write OTM calls if above 2 scenario's are meet and follow bar reversal technique for exiting on both the side or short nifty with the reversal candle high as a stop-loss,make sure to keep stop-loss on closing basis of hourly candle.
Seems like Market already had it's Diwali!!!!!!!!!!!
DISCLAIMER:There is no guarantee of profits or no exceptions from losses. The study provided is solely the personal views of my research. You are advised to rely on your judgment while investing/Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. Seek help of your financial advisors before investing/trading.
I may or may not trade this analysis
During this entire rise nifty has respected channel line shown in the charts on manier occassion there by providing us future potential reversal points.
Today it seems like nifty finally decided to change it's direction of making higher high's and higher low's.We have seen a decisive channel break along with break of previous pivot low's of 18050.A significant put was written on 18000 strike price which got taken out in today's trading session.
Going ahead it feels like nifty will be sell on rise instead of buy on dips.Short selling is not advised right now at current levels,instead one should wait for a bounce near red channel upper line(right now coming around 18200 levels), which can provide better risk reward for short selling.On the downside support lies around 17250-17300
Trade Set-up criteria
1)Look for reversal candle near upper channel line.
2)Wait for the follow through in the next candle meaning low's of reversal candle should be breached in the next candle and it should close below reversal candles low(If the next candle is inside candle then ignore that candle and consider the next candle).This is called bar reversal entry.
3)Write OTM calls if above 2 scenario's are meet and follow bar reversal technique for exiting on both the side or short nifty with the reversal candle high as a stop-loss,make sure to keep stop-loss on closing basis of hourly candle.
Seems like Market already had it's Diwali!!!!!!!!!!!
DISCLAIMER:There is no guarantee of profits or no exceptions from losses. The study provided is solely the personal views of my research. You are advised to rely on your judgment while investing/Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. Seek help of your financial advisors before investing/trading.
I may or may not trade this analysis