NIFTY approaches 16800 - sharp reversal?

lazy_kunal Pro Updated   
NSE:NIFTY   Nifty 50 Index
  • Multiple supports at 16800, however tremendous selling momentum to the downside could carry it just below to 16750
  • 16800 is the 2 ATR level as well (which is rarely broken even in the sharpest of falls) - looking back 3 years
  • Cover shorts at 16800 - then wait for the next move. If nifty heatmap shows sustained green / buying across stocks then sell a put spread at 16800 to play the bounce
  • Once the market does bounce / fails to bounce at 16800, we will take a fresh view
Trade closed: target reached:
Worked out really well as the 16800 level was tested. Covered the long puts and sold put spreads (small quantity) in Banknifty. Hopefully goes back to the 21 EMA - thats the 17300 level. Will see what happens if and when we reach 17300

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