16th Oct ’23 - Flattish Day with no flavor - PostMortem on Nifty
Nifty Analysis
Recap from yesterday: “On the 1hr pattern, the first thing I would like to do is change my stance from bullish to neutral. We have broken the 19776 support today and well above the 19446 zone. For Monday I wish to go with the neutral trades only and go short if we fall below 19614 in the forenoon session.”
We started the day with a strong red candle, maybe the spillover effect as SPX had closed with a cut of 0.5% on Friday. We did not fall below 19614 so there was no question of going short. Interestingly we recovered 89pts by 11.45 and was trading with a tint of green. Markets were absolutely flat with no flavor, people who had deployed directional strategies would have felt asleep seeing the price action. Traders who went with non-directional strategies like the iron condor, iron fly or straddles/strangles would have hit the jackpot.
In the last hour, we gave away 50pts - but nothing to worry about. Our VIX ended the day with 11.07 whereas US VIX is still at 17.61 even after a 9% collapse after SPX went green today. Lower VIX in Indian markets reflects the lack of fear or uncertainties - reiterating that it is a pathetic period to sell options thinking you can collect whatever premium is available. Selling low is not a good strategy - it is better to wait out or take a vacation if you are that impulsive.
On the 1hr chart, I wish to maintain the neutral stance until we break out or break down. Since we are near the resistance level, the probability of breaking out could be higher. That does not mean we jump the gun and take the trade early - patience is gold. I personally prefer to see a fall and retest of the 19446 levels by this Thursday - that is the only way I know to drive up the VIX.
Recap from yesterday: “On the 1hr pattern, the first thing I would like to do is change my stance from bullish to neutral. We have broken the 19776 support today and well above the 19446 zone. For Monday I wish to go with the neutral trades only and go short if we fall below 19614 in the forenoon session.”
We started the day with a strong red candle, maybe the spillover effect as SPX had closed with a cut of 0.5% on Friday. We did not fall below 19614 so there was no question of going short. Interestingly we recovered 89pts by 11.45 and was trading with a tint of green. Markets were absolutely flat with no flavor, people who had deployed directional strategies would have felt asleep seeing the price action. Traders who went with non-directional strategies like the iron condor, iron fly or straddles/strangles would have hit the jackpot.
In the last hour, we gave away 50pts - but nothing to worry about. Our VIX ended the day with 11.07 whereas US VIX is still at 17.61 even after a 9% collapse after SPX went green today. Lower VIX in Indian markets reflects the lack of fear or uncertainties - reiterating that it is a pathetic period to sell options thinking you can collect whatever premium is available. Selling low is not a good strategy - it is better to wait out or take a vacation if you are that impulsive.
On the 1hr chart, I wish to maintain the neutral stance until we break out or break down. Since we are near the resistance level, the probability of breaking out could be higher. That does not mean we jump the gun and take the trade early - patience is gold. I personally prefer to see a fall and retest of the 19446 levels by this Thursday - that is the only way I know to drive up the VIX.
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