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Nifty: Will Nifty get rejected at blue line again???Nifty CMP 14250 - Yesterday's close truly reflects the importance of Data Analysis along with Technical Analysis. - On the options front Retail traders are Net Call Buyers and Net Put Sellers (Bullish) - FIIS are Net Call and Put buyers (Neutral) - Proprietary traders are Net Call Sellers and Net Put Buyers (Bearish to sideways) - Majority of Call sellers would be happy if closing is below 14200 and would not be much bothered even if closes at 14252 - For majority of Call Buyers to profit, they would want Nifty closing above 14252 This is what data reflected yesterday. ( message in private for more details) - Our weekly Nifty expiry strategy (updated here and closed in profit) tries to capture the essence of Data analysis along with Technical Analysis. So don't forget to Follow Going forward, - we see Nifty price getting rejected twice from the blue trendline - if we see the rejection again, chances of Nifty breaking the yellow support line would increase and it may eventually fall up to 14030 and possibly even 13800 One may Consider the following strategy for Nifty Sell Nifty 28 Jan expiry 14500 Call option around 120 Buy Nifty 28 Jan expiry 14700 Call option around 58 The strategy has max profit potential of Rs 4650/-per lot giving a yield potential of 13% till 28 Jan 2021 In built Loss protection for a rise in price up to 14562 till 28 Jan 2021 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
NSE:NIFTYShort
by indiamarketoutlook
1
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...!!!
NSE:NIFTY
by indiamarketoutlook
Nifty: Wishing u all a Happy new Year & 2021 1st week outlookNifty Observations: - Nifty is currently in bullish territory - Multiple potential support areas provided by Yellow Line, Green trend line dark blue line - Risk of Nifty trying to test the 13813 – 13765 unfilled gap zone - we see a strong rollover of 78% in Index Futures Position - FIIs are Net 75% Long Important levels for January 01, 2021 Important support levels : 13935 / 13904 / 13882 / 13829 Important levels on the upside : 14036 / 14063 / 14085 / 14129 Strategy for January 7, 2020 weekly expiry - Given the chart set up and data analysis, one may consider selling Nifty 13800 Put Option between 60-80 (Closing Price 64.75) - Max profit potential in strategy Rs 4500/- to Rs 6000/- per lot till January 07, 2021 - More importantly, the strategy has an in built loss protection for a fall up to 13740-13720 till Jan 7, 2021 Any trading decision should be taken after assessing your risk management and if you are comfortable with the risk involved as against the reward potential it has. Take care & safe trading...!!! Hit the Like button / comment below if you find it useful Follow for more such ideas 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
NSE:NIFTY
by indiamarketoutlook
5
Nifty: Follow up on 1st week outlook viewNifty CMP 14102 We had given a view on 1st Jan. This is in continuation of that view... Nifty 13800 Put short Update Suggested sell between 60-80 CMP 16 The position is active and is in profit. Looking at the Options trade Data for January 01, 2021, - Retail participants are looking more optimistic and - FIIs and Proprietary traders are going preservative (message in private to know more) One may Consider adding a sell Call position Strike Price : 14200 Call Option CMP 46 The strategy is best suited for a range bound movement. 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
NSE:NIFTY
by indiamarketoutlook
4
DLF: Chart set up and trading strategy for January month expiryDLF CMP 243 Observation - level around 262 represents the Line of Resistance for DLF Given the set up one may consider the following strategy - Sell DLF 270 Call Option around 4.8 - Buy DLF 290 Call Option around 1.8 Lot size 3300 Max profit potential in the strategy Rs 9900/ ROI potential - 12.5% on Margin Capital requirement In built loss protection for a rise in price up to 273 on 28 January 2021 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
NSE:DLF
by indiamarketoutlook
2