Weekly Expiry - Nifty 50 - Trading Strategy 06 APR 2023

Apr 5, 2023

Nifty 50 broke the Resistance of 17500 and headed towards 17600. If Nifty continues to sustain over 17500 then the index will move from Negative to Neutral Bias. It has to cross 18000 to look positive. Resistance and support can be observed tomorrow at the following levels:

RESISTANCE
R3: 17790
R2: 17677
R1: 17613

SUPPORT
S1: 17500
S2: 17406
S3: 17342

TRADING STRATEGY for 06 APR 2023 - NIFTY 50:
Buy above 17570 - Take ITM 17550CE position and TGT 17640 SL 17530
Sell below 17500 - Take ITM 17550PE position and TGT 17450 SL 17550

Things to account for 06 APR 2023:
1. As explained in the previous post, tomorrow is the Repo rate announcement by RBI. The expectation is 25 basis point increase.
2. Weekly expiry
3. Friday being a holiday (Good Friday) carry forward position preferably if you are into option selling/hedging strategies (to benefit from Theta over holiday followed by weekends).

Trading is risky, and it is advised to consult a financial advisor prior to trading. These are purely my opinion based on my trading experience and exercise caution while trading. Many of these strategies are subject to adjustments as per market movements as markets are dynamic and change due to several factors.

If you require the financial advisor to assist you with investing or trading needs, please use the comments section.

HAPPY TRADING!!!

Apr 6, 2023

Note

Good news ... RBI decides to maintain the REPO rate @ 6.5%. Great news for companies. Do not take sell side. This is positive news.

Apr 6, 2023

Note

For the trade setup given earlier, better to book profit 17615. Seems there is a meeting for Covid related discussion 4:30 pm IST, which can impact gains if it turns our negative.

Apr 6, 2023

Note

India 5 year bond yield falls 13 bps to 7.02 percent after RBI decides to pause the Repo rate increase.