NIITTECH Max Pain is at 1660 Strike
Currently, 1920 Strike is ATM
Long Shadow of the Previous Candle shows rejection from Bears
Candle formation took place
Go SHORT on NIITTECH if the Low of Previous Candle is broken
is in Overbought Zone
Earning will be announced in 4 Days that is on 29 JAN
If Streets estimated are not met we are about to witness a sharp Correction in NIITTECH
This trade is like catching the falling knife which is highly risky
To manage the risk we will Hedge our position
I will update it as soon as our Entry Triggers.
Another Inside Bar Candle formation took place as shown in Charts
Previous Three Sessions were already out of Linear Regression's Band
Max Pain Stand at 1760 Strike
If the low of Yesterday's Candle is broken then go short on NIITTECH
And if you want to reduce the risk wait for the Second confirmation as Marked on the chart below
MACD's Histogram is also almost constant from 3 Previous sessions
I am highly Bearish on NIITTECH and very much confident but remember markets don't work according to us we need to understand Markets behavior
On 29th results are to be announced and the stock me go, either way hence this trade involves high risk beware of that
so better wait for it if the result doesn't meet the street's estimate our sell would be triggered, have patience but be careful now as results would be announced after market hours and the reaction would be seen on 30th which is on the Expiry.
It will be tough for Short Sellers to take market toward Max Pain point which has now shifted from 1660 to 1760 which is 100 bps jump
Let's see but if on expiry the scenario turns out to be Bearish and our sell is Trigger we would still benefit.
If first support is broken wait till Fibonacci Support and if that is also not sustained then go short here.
Volume profile shows there is not any significant change in Short positions which shows that market sentiment may change anytime
If Market manages to go above this level then it will confirm high Bullish sentiment until then keep tracking NIITTECH up to 30th JAN
Long Bearish Engulfing Candle is trying to increase our confidence
Maximum Put Writing is at 1900 Strike, which also has the highest OI on Put Side
which makes 1900 Level Strong Support.
1900 Support is also near the low of Inside Bar candle formed on 24th JAN with a low of 1900.15
1900 Level being strong support needs to be breached to confirm our
But if that level is breached with good volumes we will short most of the CE.
Later we can even trail our SL & Target according to Fibonacci Levels if Market does not hold 1780 Levels
SL = 2
Profit 1900CE 43.7
Profit 1880CE 59.6
Profit 1860CE 68
Profit 1840CE 84.1
Profit 1820CE 108
Profit 1800CE 65
Net Profit = 451.05 * 375 = 169143.75
Max Pain is at 1880
1927 is acting as immediate Support Level
As traders have high expectations from this Budget we may see a Rally in NIITTECH but soon as soon as that rally end we may witness a Correction of 100 bps depending on the Slope of the rally
Wait for budget then we will take a hedged position in NIITTECH depending on Markets interest