Buy-sell
EICHERMOT--WATCH FOR BREAK OUT OR BREAK DOWNAfter the Head and Shoulder breakdown the price is now at a crucial support level. We may see a reversal from the current support to the trend line.
Be prepared for an outcome on either sides. Can be a good trade on either sides if volumes are good. Wait for price action.
Nifty: Moving on expected lines as per Technical AnalysisNifty
CMP 14338
If you have been following me this is exactly what I have been writing since April 5, 2021.
- level of 14885 was identified as crucial resistance zone
- our arrow marks for Nifty movement drawn in our April 05 post, blue lines showcased in our April 13, 2021 post, reflect Technical Analysis suggesting the zone of 14150-14237 to provide some support...
What we are seeing now is these levels pre-identified with the help of Technical Analysis being respected to perfection....
Need I say more...
Trading is not about buying and selling randomly just like that. Trading is more about
- having a systematic approach...
- Planning your trade well in advance,
- be ready with actionable steps, and
- during market hours when you see those levels come, it's just execution of your plan with better clarity and thought process in your mind without any confusion...
One can argue that the current down movement happened because of NEWS about second wave of pandemic hitting us hard and that it was just lucky coincidence.... Hmmm... Well then, here are few more chart analysis which made me feel lucky with my trading strategies....
Infy, TCS (which had result announcement event) and DLF trading idea... 😊
I say, follow Technical Analysis, listen to charts instead of NEWS and chances are you too might start feeling more lucky ... 😉 ;-)
Going forward...
- expecting some bounce back
- however, we have seen a crossover of 20 day EMA moving below 50 day EMA around 14600 levels
- 14460 / 14540 / 14655 are 3 important resistance levels that one needs to look out for....
- overall view still remains the same - Nifty seeing further lower levels (sub 14000) on the lower side
- I have highlighted the zone above which pattern gets invalidated
Take care & safe trading....!!!
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Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
LRCX Lam Research and the Semiconductor Chip ShortagesLet`s put this into the context of the Semiconductor Chip Shortages:
LRCX Lam Research makes the equipment needed to manufacture new chips.
TSM Taiwan Semiconductor is raising its capital equipment budget.
Earnings in 4 days! i expect to have solid gains.
On 4/16/2021 Credit Suisse Group Boosted Price Target to Outperform ➝ $750.00
91.991B MARKET CAP
0.81% DIVIDEND YIELD
32.23 P/E Ratio
This should be a safe bet for the next week.
If you are interested to test some amazing BUY and SELL INDICATORS that i use, which give the signal at the opening of a candle, not at the the candle close, like others do, just leave me a message.
Nifty: Derivatives data, Psychology & Today's movementNifty
Closing Price 14146
Looking at the charts we observe Nifty was trading near Line of Resistance (look at my previous idea for more clarity)
This is the Derivatives Data Analysis for Positions taken by various Market participants a day before
Futures Data
- Retail participants added 23.36 Index Futures Long Contracts & added 18.39 K Index Futures Short contracts
- FIIs booked profits in 1.95 K Index Futures Long Contracts and exited from 423 Short Contracts
- Proprietary traders added 312 Index Futures Long contracts and added 3.01 K Short contracts
Call Option
- Retail participants exited from 34.71 K Call Long Contracts & added 1.97 K Call Short contracts
- FIIs exited from 20.25 K Call Long Contracts and exited from 15.15 K Call Short Contracts
- Proprietary traders added 20.64 K Call Long contracts and exited from 21.17 K Call Short contracts
Put option
- Retail participants added 2.67 Lakhs Put Long Contracts & added 1.96 Lakhs Put Short contracts
- FIIs added 16.69 K Put Long Contracts and added 34.02 K Put Short Contracts
- Proprietary traders added 48.36 K Put Long contracts and added 1.02 Lakh Put Short contracts
So we see Retail Participants were Index Futures Long and also major Net Put buyers
FIIs and Proprietary traders on the contrary were major Net Put Sellers
Nifty opened and stayed flat till 12:30pm not giving much to Futures buyer and also testing the patience of Put Buyers. In that time we also saw many accepting that Put buy is not working and some started squaring off their Put buy position and many started switching to Call Buy.
Once that phycological shift happened we saw a one shot drop of 160 points between 12:30pm-2:00pm giving that what if...feeling.
And then markets recovered back 100 points to close the day at 14146 ensuring both Call and Put closing in negative territory or flattish at best.
My friends understand that Out of 6 hours and 15 mins daily trade time, that 1 1/2 hour of time is all what Put buyers had in their favor. Because after 2:00pm it was back in favor of Put sellers
So that 1 1/2 hr time translates to just 24% favorable time frame for Option Buyers of the total trading time for the day.... So if you are buyer of an option this is what odds would look like and More so the reason why you need to analyze more in depth, do your home work and be prepared. Remember, there is no free lunch.
If you have been following me, we had suggested a 13800 Put sell on January 1st 2021 and subsequently on Jan 4, we also suggested adding a Sell Position in 14200 Call
Go on and hit the Play button on that chart and we are not far off from what we had predicted...
Today we closed both the positions in profits.
Follow and learn the tricks of Options trading...!!!
Message in private for more details
Take care & safe trading...!!!
Complete strategyThis is a momentum based strategy which generates signals when the price moves with momentum in either direction. This strategy works well on liquid stocks. Its not necessary to close the trade as soon as the close signal is generated and one can wait for the price to move in the direction as indicated by the prior signal unless price starts to go in the opposite direction. The best set up for a trader is his/her own set up and hence it is recommended to use this strategy with your set up/research.