Negative Divergence in Daily chart of GrasimGrasim showing weakness in momentum after a long run up to 1450 levels, currently trading at 1367.
Loss of momentum is evident in RSI divergence as pointed out on the chart.
One can look to short this stock with SL above 1450 on closing basis.
Note: Result is expected to be announced on Monday for this stock, so keep you risk under control.
Options trading plan:
One can Sell 1450 strike call @ around 14 And Buy 1500 strike call @ around 7.5
Lot size: 475
Margin required: (~) Rs 46000
Max reward: Rs 3087
Max Risk: Rs 20660 (Defined risk strategy)
Do you own analysis before action upon this idea. All the best.
Options
Banknifty 14th may Hello,all ..nifty showing down signs that ll ultimately affect banknifty means banknifty may go down as chart shows on last expiry day opening and closing candle range totally below both uptrend n downtrend line .mostly if its cross 32200 level then next support at 32000 level if further breaks that level then it ll may touch 31851 range. if it want to go up it ll have to cross 32900 level then then it ll go up..but as chart shows sentiment is negative.
caustion: this is just my chart analysis n its for education purpose only .if you want then do trade at your own risk . dont take as prediction,because no one one above the market.
DLF: Chart view and trading strategy for the month of MayDLF
Observations
- the stock is currently trading in downward yellow channel
- 20 day EMA at 255
- 50 day EMA around 267
-38.2 Fibonacci retracement of the fall from 332 to 232 comes at 270
Given the important levels
One may consider a Bear call Spread strategy in DLF
It involves selling Call option and buying higher OTM Call option
Sell DLF 27 May expiry
270 Call Option
CMP 5.2
Simultaneously
Buy 290 Call option
CMP 1.8
The spread strategy reduces margin requirement and thereby can give higher ROI ( approximately 13.5% yield potential on margin requirement )
Max profit potential in strategy Rs 11220/- per strategy lot
Take care & safe trading...!!!
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
AMARAJABAT - High Probability of bullish movement.On the chart pattern of AMARAJABAT, we have found a breakout and retest of the falling wedge. The stock is trading near the support zone. Let it break the high of previous candle and you can make a long entry.
Nifty: Is this a Buy in dips opportuinityNifty
Earlier we were expecting Nifty to do a sub 14000 level. In that post we had highlighted that Nifty has a chance of bouncing back towards 14655. Well the bounceback has been much more than that and today despite we seeing a big dip in Nifty, it is so far trading well above
- 20 day EMA at 14648 &
- 50 day EMA at 14622 currently
Trading above the EMA changes the structure and So far as Nifty stays above the 2 EMAs Nifty may be considered as a Buy on dips opportunity.
Exit if closing is below the EMA
Given the set up,
Strategy that can be deployed
Consider
Selling Nifty 06 May expiry 14400 Put option around 70
Lot size 75
Max profit potential in strategy Rs 5250 per lot.
The strategy gives a decent return potential
But More importantly the strategy provides Risk cover for a fall in Nifty price up to 14330 giving ample scope and time to exit with less damage in case Nifty moves otherwise.
Take care & safe trading...!!!
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
Bank Nifty: Chart set up and trading strategyBank Nifty
Observations
- we observe Bank Nifty trading in down trend channel
- Bullish Engulfing candlestick pattern seen in chart
Pattern gets invalidated if Bank Nifty closes below 30405
Given the set up, Strategy that may be considered
Consider selling Bank Nifty 27 May 2021 expiry
30000 Put option between 700-800 (Last traded Price 753)
The strategy has a return potential of Rs 17500- 20000 per lot
More importantly the strategy has inbuilt Stop loss protection up to 29300-29200 till 27 May which is roughly a protection of 2500 points from current levels
Take care & safe trading...!!!
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
NIFTY TRADE SETUP FOR EXPIRYThere will 3 kind of scenario in the market .1. Gap up2. Gap down 3. normal .L ets discuss all three scenario in detail and set a trade plan accordingly . 1} Gap up :- If nifty opens above 14575 or 14650 . then we will look for buy on dip till market sustain above 14450 . 2 } gap down opening :- if nifty opens below 14450 .then we will look for Sell on rise till nifty sustain below 14550 . 3. normal opening :- in case nifty opens 14450 - 14550 . then we will see range bound market . and movement comes either in first 15 minute or in 2nd part of market . in such scenario mark the range and sell Ce option at high and sell Pe option on Low. Nifty define its Range in first 15 min or max in 30 minute . Mark the range , identify the market and set your trade with conviction and SL. wish you all Happy trading . Thanks for messages and support.
Nifty: Trade data analysis, Chart set up and co-relationNifty
Derivative data analysis for trade day April 9, 2021
Futures Data
- Retail participants added 10.97K Index Futures Long Contracts & exited 434 Index Futures Short contracts
- FIIs added 990 Index Futures Long Contracts and added 6.56 K Index Futures Short Contracts
- Proprietary traders added 1.47K Index Futures Long contracts and added 5.98K Index Futures Short contracts
Call Option
- Retail participants added 2.71 Lakhs Call Long Contracts & added 2.76 Lakh Call Short contracts
- FIIs added 38.86 K Call Long Contracts and added 37.75 K Call Short Contracts
- Proprietary traders added 1.04 Lakh Call Long contracts and added 1.01 Lakh Call Short contracts
Put Option
- Retail participants added 1.77 Lakhs Put Long Contracts & added 2.12 Lakhs Put Short contracts
- FIIs added 34.04 K Put Long Contracts and added 18.61 K Put Short Contracts
- Proprietary traders added 1.01 Lakh Put Long contracts and added 82.87 K Put Short contracts
At important technical resistance levels, We observe retail traders going Long aggressively and on the other hand FIIs and Proprietary traders going short in index futures.
On the Options front, we observe Retail traders being Net neutral in Call Options and Net Put Short
FIIs & Proprietary traders were Net neutral in Calls and were Net Put buyers
Today, we see Nifty dropping 400 points... and the result is in front of us who the winner of the set up is...
If you have been following me, you would realize I have been highlighting the importance of resistance at 14882. On an intraday basis, it did breach it and traded higher but on a closing basis it was respected to perfection. Our strategy to sell 14900 Call option had factored in this kind of risk and we were well positioned and came out making profits in the trade
Prior to this we also suggested a strategy to go short in 15200 Call option for May series in the region of 250-300.
Our strategy to sell 15200 Call option for May series in the region of 250-300 gave ample opportunity to enter the trade . It has made a low of 143 so far and is now trading at 150 and is in profit
Going forward, On Technical Analysis front
- it has opened below 50 day EMA
- broken the yellow turned dotted red line
- at the important blue Lakshman Rekha line ( level identified since February 2021 and has been massively respected)
- with multiple re-test of Laxmam Rekha line, is it getting weaker and would it break...???
Only time will tell... All these points have been discussed in my previous Nifty posts which you can go through...
This is not a recommendation now. We are reaping the rewards of the hard work done earlier.
This post is more for you to understand
- the importance of doing your homework,
- analyzing profit potential and risk involved before you enter a trade &
- preparing a trading plan that suits you and factors in the risk....
- and more importantly be in control of the situation and be in better frame of mind.
If you want to improve as a trader, first thing you need to do is ensure your mind is relaxed.
And to be relaxed you need to prepare a good trading plan.
Remember, chances of you making a better trading decision would increase when you do your homework and when you have the right mindset.
Best wishes....!!!
Like and Follow
Bank Nifty Intraday Trade Setup | 8th April 2021As we analyzed yesterday it was a trending day for BankNifty. It made low in first 5 mins, once broke the high of 15 mins candle then all day up.
I mentioned about Spanattack strategy which gave us good trade which I shared in the Public Telegram channel and it has approx 80-85% accuracy.
Expectations for Tomorrow: Range-bound day.
Resistance: 33400
Support: 32333
Intraday Levels:
Buy Above 33050
Sell Below 32850
To motivate me, Please like the idea If you agree with the analysis.
Happy Trading!
InvestPro India Team
Nifty Intraday Trade Setup | 8th April 2021As analyzed it was a Volatile day due to the Credit Policy. We saw the gap-up opening and soon it tested our Buy Level and went up, as per set-up we didn't get the entry as it was done within 15 mins.
I mentioned Spanattack (time-based price action) Strategy which is giving around 80% accuracy until now.
All our Trading Rooms would get Spanattack Strategy before market hours.
Expectations: Range-bound day.
Intraday Levels:
Buy Above 14885
Sell Below 14925
To motivate me, Please like the idea If you agree with the analysis.
Happy Trading!
InvestPro India Team
Nifty: Chart levels and trading strategy for the 08 April expiryNifty
CMP 14774
- We have got the rise we were looking for
- on charts we see 2 important resistance levels at 14818 and 14885 levels
given the levels we have suggested a trading strategy in chart
The trading strategy covers risk for a rise in Nifty price up to 14954-14964 giving us ample scope to adjust / exit in case Nifty movement is not in favor.
Take care & safe trading...!!!
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