tomorrow is the day when Indian union budget will be presented and a lot of movement is expected.
You'll get a lot of calls/ideas saying this will happen, that will happen, go long, go short, etc.
But, as professional traders, we know that predicting is not our job, our job is to make money.
Believe me, whoever tells you that he knows what all will be announced in budget and how the stocks and index will react, he is lying. Nobody knows, not even the finance minister Jaitley himself, that at what level will Nifty -0.83% go. Hence, don't decide beforehand that I'll long because I know it will go up or I'll go short because I'm sure it will go down. That's a beginner's approach. Not ours :p
Crazy movement is seen on budget day. So trade with caution and save yourself from swift movements against you. SL is must.
So, how do we do make money?
Here's my strategy,
( you can trade with other strategies too, but whatever I have written above is true for everything, that's why I titled it as a Must Read )
According to my analysis, I have marked levels on Nifty -0.83% .
You can see R1 which is the Resistance, so if Nifty -0.83% stays above today's CMP , there's no real resistance.
You can buy as long as it stays above it, Nifty -0.83% is strong.
You can see S1 and S2, they are Support points, but they might be breached if the market is unhappy with the budget. You can go short when it goes below these lines, with the line as SL.
And then you can see S*1, S*2, S*3 which are stronger support lines which shouldn't be easy to go through, and which should act as your take profit points. ( targets ) when you go short below S1,S2.
If it goes below S*1, Nifty -0.83% is too weak then.
Additionally, you can see a special blue , if it stays above it, then Nifty -0.83% is ultra strong, below it, not so much...
Final words : Stay calm, follow your plan, don't rush, take quick action, be prepared for reversals. Thanks and best of luck :)