Nifty Options Expiry Trade_210121Price action suggested a weakness in the index, hence continued to add more option selling at 14800 CE and bringing the hedge down from 14900 CE to 14850CE, thus reducing the risk in the trade and improving the risk-reward.
Gap up opening was a bit of a scare initially for the Call sold position, however there was no decisive upmove which was a saviour.
Index
KEY SUPPORT / RESISTANCE LEVEL (FNO) FOR 19 JAN 2021 + NIFTY 50Apollohosp 2600
Bhartiartl 600
Hdfcbank 1500
Idea 13
Itc 220
Pel 1600
Pvr 1500
Reliance 2000
- Above is an important level that is highly likely to act as support / resistance for intraday purposes
- Price reversing / breaking these marked levels can yield big moves
- Please use your own set-up / indicator(s) for further confirmation
SENSEX AnalysisSENSEX have a strong resistance at 46241 (Fib level 61.80 %).
Rejections at yellow zone ( i.e. Fib level 61.80 %) may push the SENSEX down to 44348 (Fib level -27 %).
Once crossed the green zone (i.e. Fib level 78.60 %), we can expect bullish trend & SENSEX can reach up to Fib level 127 %.
S&P 500 The price of the S&P 500 is increasing but the Awesome Oscillator is decreasing, this states that a great downfall is coming ahead.
There is proof that a downfall will come because whenever this situation comes, that when the market is rising and the AO is not rising the markets went down brutally.
Please check in the years 2000 and 2008 the same thing happened and the market went down.
The history is going to repeat.
Please be cautious.
NIFTY : ZIGZAG CORRECTION AHEADAfter a recent high of 11800 , nifty has given a fall to the level of 11185 with a pattern called a LEADING DIAGONAL.
Leading Diagonal is formed when a new trend is going to start or at the starting of a ZIGZAG CORRECTION for the prior move.
As per the current structure , we can assume it is going to have a zigzag correction.
Trading Strategy:
Sell in the range of 11600-11700 keeping stop loss of 11810 for the target zone of 11200/11090/10900