Options
NIFTY FUTURE IS LOOKING VERY STRONG Nifty Future is looking strong, it will touch 16000 mark very soon. As per yesterday's option writing 14800PE has 34,696 Lots addition and 14800CE negative 12,261 Lots which indicate it will act as strong Support for the market near future or this month.
14900PE has 20,384 Lots addition and 14900CE -8089 Lots so no addition in Call side indicate it will also a strong support.
15100CE has 5426 lots addition and 15100PE 1650 lots will act as resistance (but if PE side more build-up happen today then can break)
15200CE has 7513 lots addition and 15200PE 1563 lots addition which is highest yesterday's option building in Index. Then 16000CE 4248 lots writing.
So I am expecting we will see 16000 mark very soon may be this month before expiry.
Note: All Option data is as per NSE F&O Bhav copy dated 17-05-2021 Cumulative Option OI.
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Nifty May 27 F&O StrategyNifty
CMP 14578
Last time when Nifty was at 14800 we felt that Nifty may not go below 50 day EMA
and felt it could be a buy on dips market.
- however currently Nifty is trading below 20 day & 50 day EMA
- RBI special announcement event with regards to Banking support done
We were cautious and went for a conservative strategy of selling Nifty 06 May expiry 14400 Put at 70
Nifty despite being down the strategy has yielded a profit to us
CMP 32
Option strategies may be less profitable per trade but if used properly it can increase your probability of more winning trades.
If today's closing is below the EMAs there is more likelihood of further downside
Positional Target for the current set up 14140 / 13800
Given the set up one may consider
selling Nifty 27 May 2021 expiry
15000 Call option
in the range of 140 - 160
cmp 144
Max profit potential at CMP Rs 10800/- per lot
Loss in strategy only if Nifty closes above 15144 on 27 May 2021
Be alert if Nifty closing is above 14720.
The strategy provides enough scope to adjust / exit with less damage if 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
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.
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.