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Nifty: Is Nifty Feeling the October heat near resistance zone?Nifty - We are looking at daily candlestick chart Observations - On 16 Sept Nifty opened gap down between 17877 to 17796 - coincidently Nifty 76.4% retracement level is also around same level 17777 - for 4 consecutive days Nifty is struggling at 17800 levels - With 1 hour's trade to go today volume is on a lesser side Given the conditions, fresh longs in Nifty can be avoided. Have bought a few Put options for 24 November expiry. Review points for me - View gets invalidated if Nifty trades above 17880 Please follow your risk management measures Take care & safe trading...!!! Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
1
Ambuja Cement: Chart set up, view and trade potential Ambuja cement We are looking at weekly chart of Ambuja Cement - weekly closing high 539.35 - low made thereafter 471.05 The stock has possibly done its short term target on the upside (Jitna neeche utna ooper) View: Rangebound Given the set up one may consider a Bear Call Spread strategy Sell 560 Call option currently around 8.3 Buy 600 Call option currently around 3.1 Lot size 1800 Net receivables Rs 9360 per strategy lot Margin requirement approximately 91K Profit potential approximately 10.25% on Margin till 24 Nov 2022. Protection for a rise up to 565.2 till 24 Nov expiry. Review point for me, If weekly close is above 544. It gives ample scope to adjust / exit in case stock behaves in a different way. Do follow your risk management measures Take care & safe trading...!!! Like and follow for more trading ideas like this Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:AMBUJACEM
by indiamarketoutlook
ICICI Bank: Chart set up and trading strategyICICI Bank We are looking at daily candlestick chart pattern Observations - ICICI Bank chart reflects it made a gravestone doji on September 15, 2022 (indicates previous buyers were happy to sell at 936 odd levels) - subsequently we saw profit booking in the stock - now the stock is back at 920-940 odd levels - we see ICICI Bank still not making a decisive move above the September 15 high View going forward - so far as ICICI Bank is below 945 odd levels we might see ICICI Bank rangebound - support at 868 / 844 Given the set up one may consider a Bear Call Spread strategy in ICICI Bank Sell 960 Call option currently around 12 Buy 1000 Call option currently around 4 Net receivables 8 points Lot size 1375 Net profit potential Rs 11000 per strategy lot Margin requirement - approximately 93500 Yield Potential - 11.75% approximately Review point for me: If ICICI Bank closing is above 943. It gives ample scope to adjust / exit in case stock moves otherwise. Pls follow your Risk management measures. Take care & safe trading...!!! Like and follow for more trading ideas like these Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:ICICIBANK
by indiamarketoutlook
DLF: Chart set up and trading strategyDLF Multiple Line of resistance around 376 - 385 - 21 day EMA around 370 - 63 day EMA around 369 - 252 day EMA around 354 Given the set up one may consider a Short strangle strategy in DLF Sell DLF 400 Call option Sell DLF 340 Put option for October series Net receivable Rs 9.6 per strategy lot. Max profit potential Rs 15840 per strategy and gives a yield potential of approximately 11 % on Margin till expiry. Review points, if closing below 353 or above 385 Take care & safe trading...!!! Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:DLF
by indiamarketoutlook
Nifty: Chart set up for November series and trading strategyNifty - we see Nifty trading above 21 day EMA, 63 day EMA and well above 252 day EMA - Line of resistance around 18200 odd levels - Line of Support around 16800 - So is the 200 day EMA support around 16780 Right now we are in the middle of the range Trading strategy Given the set up one may consider a Short Strangle strategy for Nifty for November series Sell 18300 Call option currently around 93 Sell 16500 Put option currently around 79 Net receivables 172 points. Yield potential of approximately 9% on Margin deployed in strategy till 24 Nov 2022. Loss in strategy if Nifty closes above 18472 or below 16328 on 24 November. Review points for me, 18030 on the upside and 16800 on the lower side. This would give ample time to exit / adjust in case need be. You decide on your Risk Management part. Take care & safe trading...!!! Do Like and Follow for more such trading ideas! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
2
Nifty: Plan your investment / trade after you read this... Observations - we are looking at Post 2008 Global meltdown era - the chart here is Nifty weekly chart - we have used 252 week EMA for our thesis - A Cycle here is defined as the rise of Nifty from 252 week EMA - making a top and then retesting the 252 week EMA - correction only to the point of 252 EMA is taken in to consideration - to cut off the noise, only time cycle where the candlestick is more than 104 weeks (2years) is considered Cycle 1 - we see 80 weeks of Rising phase giving returns to the tune of 84% before peaking out - the c orrection phase lasted 55 weeks and gave negative returns of 28.5% Cycle 2 - In 79 weeks in the Rising phase , Nifty gave 79% approximately & - in Correction phase it corrected 24.5% in 47 weeks Cycle 3 - this was an exceptional phase as the Rising phase lasted 205 weeks before peaking out and gave returns of 81.5% approximately & - the correction phase was the shorted and correction up to 252 week EMA was done in just 7 weeks which was 19% below the 12430 peak (again note we are not talking about full correction which was 39% but only correction up to 252 EMA here) Cycle 4 - In the current cycle, if 18604 level is our peak so far, it was reached in 72 weeks giving returns of 89% - the correction phase has already done 51 weeks so far & counting Interesting co-relations - Except for Cycle 3, The rising phase has been between 70-80 weeks - All the 4 Rising phase have given returns to the tune of 80-90% approximately - All the correction phase has been shorter than Rising phase - currently 252 week EMA is approximately 26% away from the recent peak corelating well with historical corrections Wow... that was too much of data analysis.😀 Whether Nifty retests 252 week EMA or not; only time will tell. All we can do is plan for it, be prepared and if opportunity does comes then be in control of the situation and make the most of it...😊 I hope the analysis would help you in planning your trade and investments... AIM FOR THE BEST... PLAN FOR THE WORST ! Do let me know what you think in the comment section below You can Thank me with a little Like and you can follow me of course. Feel free to share it, if you think it could help some one plan their trade and investment. It would make me feel the effort was worth it 🙏🙏 Take care & safe investing / trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
8
Nifty Trade data analysis for trade decision making -Oct 12 2022Nifty Retail traders had a bet neutral addition in Index Futures and in Options had a net positive bias FIIs added more on the Short side in Index Futures and in Options had a net negative bias Proprietary traders added Long in Index Futures but have hedged it using Options Before taking any trade decision today Important pointers PCR is at 0.72 Since PCR is in oversold region Fresh shorts might be risky and should be done near resistance levels. Watch out for 17096 odd levels in Nifty futures. That would decide whether we see short covering rally or whether bounce fizzles out Majority of Weekly Call Option buyers of yesterday are trapped now and might require a Nifty close above 17280 by 13 Oct So understand the psychology of traders and take decision wisely Like and follow For more info you can Direct Message me Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
1
Nifty at 240 day EMA and trading strategyNifty - RBI Policy Meet on 28Sept- 30 Sept 2022 - Result season is about to begin and Nifty is near 240 day EMA Important Fibonacci level that may provide Support 61.8% retracement 16293 76.4% retracement 15868 Important Resistance zone 17166-17320 zone 17758-17820 zone Given the set up one may consider to go for a Short Strangle strategy in Nifty for Oct series Sell 15800 Put option and Sell 17800 Call Option The strategy has a profit potential of 10% and gives a protection - for a fall up to 15620 odd levels on the downside - for a rise up to 17980 odd levels in the up side That's a protection of approximately 1200 points on either side from current levels. However do understand that trading in F&O involves risk. Read the disclaimer carefully. Do Like and Share if you find it useful. Take care & safe trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
2
Nifty: How Data Analysis can help youYesterday's trade data clearly showcased that the FIIs had added Net Short position in Index Futures Retail traders went long in Index Futures. In Options retail traders were more active in Put side but had bias on the Long side.. . Even in Stock Futures FIIs added Short positions Trade with knowledge. Invest some time in study and then in trade.... My recent trading ideas DLF, Asian Paints, TCS where sideways to short trade was suggested and IDFC First exiting from Long positions at 54.5 Like and Follow Take care & safe trading...!!! You can Direct Message for more info
NSE:NIFTY
by indiamarketoutlook
4
Asian Paints: Chart set up and trading strategyAsian Paints - After 3 Black crows candle stick pattern, recovery in the stock has been tepid so far - The tepid recovery is also due to rise in crude oil prices during the same time. - Given the setup, one may consider to sell Asian Paints 3500 Call Option around 50 (October series) Keep a close watch if Asian Paints closes above 21 day EMA ( currently around 3386) and or crude prices cools off drastically Take care & safe trading Disclaimer -The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:ASIANPAINTShort
by indiamarketoutlook
Nifty: Wheels on the Nifty go up and down On September 28, it was suggested that Nifty is near 240 day EMA and that 17166-17320 zone might act as short term resistance and short term support being around 16300 odd levels. Well, Nifty has made a high of 17187 thereafter and and now is back at it's 240 day EMA. For the October month, Important Support and resistance levels going forward Gap support 1 - 16653-16746 Gap support 2 - 16360-16490 - 50 day and 20 day EMA around 17270 and 17340 coinciding with Gap resistance zone at 17166-17320 The Short strangle strategy suggested on 28 September, which had a Net receivables of 181 points at that time; is currently valued at 125. That gives a profit of 56 points per strategy lot. We continue to hold and as long as Nifty is between 16300-17320 odd points, we would be passive in our trading approach. Important levels to watch out for till 6th October 2022 16980 / 17062 / 17123 on the upside 16855 / 17733 / 17608 on the downside Take care & safe trading...!!! Disclaimer - The view expressed here is my personal view - Past performance is not a guarantee for future predictions - I have been wrong in the past and can be wrong again in future too - 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
NSE:NIFTY
by indiamarketoutlook
Types of participants in the derivatives marketHey everyone! Last week we talked about the basics of derivatives and what all different derivative instruments are available in the markets. In this post, we will talk about the types of people who use derivatives and why they exist. There are broadly three types of participants in the derivatives market: → Hedgers → Traders (also called speculators) → Arbitrageurs. An individual may play different roles at different times. Hedgers → They employ derivatives to mitigate the risk they suffer from fluctuations in the pricing of the underlying assets. → Institutions such as investment banks, central banks, hedge funds, etc. all use derivatives to hedge or reduce their exposures to market variables such as currency exchange rates, interest rates, equity values, bond prices, and commodity prices. Speculators/Traders → The speculators are primary participants in the futures market. → They try to predict the future movements in prices of underlying assets and position themselves accordingly. → Speculators can be individual traders, proprietary trading firms, hedge funds, or market makers. Arbitrageurs → Arbitrage is a deal that produces profit by exploiting a price difference in a product in two different markets. → Arbitrage occurs when a trader executes a simultaneous purchase and sale of the same asset in different markets in order to gain from tiny price differences between them. → The arbitrage trade is often short lives because the arbitrageurs would rush in executing these transactions, thereby closing the price gap at different locations. Thanks for reading! Hope this was helpful. See you all next week. 🙂 – Team TradingView Feel free to check us out on Twitter , Instagram , and YouTube for more awesome content! 💘
NSE:ADANIPOWEREducation
by TradingView
1
Basics of DerivativesEver wonder what derivatives are? Check out this handy guide! 😉 A derivative is a contract or a product whose value is derived from the value of some other asset known as underlying. A variety of underlying assets serve as the foundation for derivatives. These include: → Financial assets such as Shares, Bonds, and Foreign Exchange. → Metals such as Copper, Zinc, Gold, Silver, etc. → Energy resources such as Crude oil, Natural Gas, etc. → Agricultural products such as Wheat, Cotton, Sugar, Coffee, etc. Cotton Futures Gold Futures Derivative Instruments Forwards It is a contractual agreement between two parties to buy/sell an underlying asset at a certain future date for a particular price that is pre-decided on the date of the contract. Both the contracting parties are committed and are obliged to honor the transaction irrespective of the price of the underlying asset at the time of delivery. The terms and conditions of the contract are customized to cater to the needs of both parties. These are Over-the-counter (OTC) contracts, meaning they are a deal you make directly with a bank or a dealer. As a result, there is always counterparty risk involved. Futures Futures are standardized contracts similar to a forward contract, except that the deal is made through an organized and regulated exchange rather than being negotiated directly between two parties. The arrangements come with a fixed maturity date along with uniform terms for all the parties involved. In simple language, futures are exchange traded forward contracts. The futures contract has little to no counterparty risk since the exchange is acting as a mediatory. Options An Option is a contract that gives the right, but not an obligation, to buy or sell the underlying on or before a fixed date and at a stated price. While the buyer of the option pays the premium and buys the right, the writer/seller of the option receives the premium with the obligation to sell/ buy the underlying asset if the buyer exercises his right. There are two types of options: → American → European American options can be exercised at any time prior to their expiration while the European options can only be exercised on the expiration date. In India, European options are used. Swaps A swap is an agreement made between two parties to exchange cash flows in the future according to a prearranged formula. A random variable (such as an interest rate, foreign exchange rate, commodity price, etc.) is used to determine at least one of these series of cash flows at the moment the contract is initiated. Swaps are, broadly speaking, a series of forward contracts. They help the participants manage risk associated with volatile interest rates, currency exchange rates, and commodity prices. Thanks for reading! Next week we’ll talk about the types of people who use derivatives and why they exist. Stay tuned! See you all next week. 🙂 – Team TradingView Feel free to check us out on Instagram , YouTube , and Telegram for more awesome content! 💘
NASDAQ:TSLAEducation
by TradingView
2
How and when should apply which Option's strategyHey everyone! 👋 This post is just for sharing knowledge about Future and Options strategies, First of all, one should build view (bias) on market direction, it may be bullish, bearish, sideways, or there may be some events too, like budget day or quarterly results seasons or may be something else, once view is built then what are the ways to apply futures and options strategies are shown in this post. Options trading may sound risky or complex for beginner investors, and so they often stay away. Some basic strategies using options, can help a novice investor protect their downside and hedge market risk. Options trading is meant to provide a process that defines the selling and buying of options by a trader. The options trading strategies are what make up the options trading. There are various ways that a trader can use the options trading strategies to their advantage. Options trading is a great way to increase your returns as an investor. You will be able to generate profits when the market goes up or when it goes down. However, with so many options trading strategies on offer, you may find it difficult to know which one to choose. This post is showing ideas of the different options strategies and help you choose the right one based on your views. What Are Options Strategies? Options are one of the most flexible and powerful way for investing in the stock markets. Investors can utilize stocks in many ways, including buying and holding onto them to long-term appreciation in value or short-term trading to make a quick buck. However, the stock market is huge, and investors can utilize many sophisticated strategies. The first complex strategy is called a call option. Call options are contracts that enable the holder to purchase a stock or other asset at a specific price within a specific time frame. If the price goes above the strike price, the owner can buy the stock at a lower price and then sell it at a higher price. This can result in a great return, but a loss is possible if the stock doesn't move or move in opposite direction. Types of Options Strategies There are four ways to trade options strategies : call, put, spread, and straddle. First, let's start with the call and put. A call is a contract that gives the owner the right to buy a stock at a specific price on or before the option's expiration date. On the other hand, a put is a contract that gives the owner the right to sell a stock at a specific price on or before the option's expiration date. Spreads and straddles are both strategies used to manage risk. A spread is created by buying the same type of option with the same expiration date but with a different strike price. The strike price is the underlying stock price when the option is exercised. A straddle is created by buying an option with a lower strike price and an option with a higher strike price with the same expiration date. Pros and Cons of Options Strategies Just like selecting a stock to trade or invest in, selecting an options strategy can be a difficult task with risks and potential payouts. The pros and cons of options strategies help you decide which is best for your investing style. Pros: - Lower investment costs​ - Stock options can be used as a way to hedge your investment or portfolio risk Cons: - High risks and losses can occur if you don't research your options strategy​ - Options can only be exercised at the expiration date​ Conclusion Traders can use Options strategies to take advantage of both rising and falling prices of stocks. We hope you have gained a deep understanding of what options strategies are this post. See you all next week. 🙂 RK_Charts Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Disclaimer. I am not sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing.
NSEIX:NIFTY1!Education
by RK_Chaarts
125