Short NIITTECH

Short NIITTECH

NIITTECH Max Pain is at 1660 Strike

Currently, 1920 Strike is ATM

Long Shadow of the Previous Bullish Candle shows rejection from Bears

Inside Bar Candle formation took place

Go SHORT on NIITTECH if the Low of Previous Bullish Candle is broken
RSI 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.


Happy Tradin...

Comment:

It cannot be more confirmed than this

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

Comment:

Most Probable this Move was seen as traders are Bullish on results which is tomorrow
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.

Comment:

Traders will be nervous tomorrow, PCR is 0.92 which shows Neutral Sentiment
If first support is broken wait till Fibonacci Support and if that is also not sustained then go short here.
in.tradingview.com/chart/1bpXFCLX/

Volume profile shows there is not any significant change in Short positions which shows that market sentiment may change anytime
in.tradingview.com/chart/1bpXFCLX/

If Market manages to go above this level then it will confirm high Bullish sentiment until then keep tracking NIITTECH up to 30th JAN
in.tradingview.com/chart/1bpXFCLX/

Comment:

Comment:

RR Ratio is 1: 2 which is good considering a 140 bps move we are expecting
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
Bearish view.
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

Comment:

As soon as NIITTECH falls below 1900 Level, Short all CE from 1920 to 1800
SL = 2

Comment:

Max Pain shifted from 1760 to 1780

Trade active:

Our entry got triggered, this is the time to mint money

Trade closed manually:

Profit 1920CE 22.65
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

Comment:

NIITTECH PCR is 0.289 which is highly Bullish
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