A hugely volatile day observed following global cues. Flag patter in observed on 1 minute chart with a downside breakdown however, it is near a support zone. Wish to see the support would be held and continue with sideways movement.
Breakout visible at the end of the screen capture!
Price 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.
Yesterday, we entered into a trade for tomorrow's expiry. We also discussed about the presence of strong resistance around 14650 to 14660 levels for Nifty50, that is where we have observed some correction or reversal. Our trade for Sell 14800CE is intact, while we have shifted the short position of 14150PE to 14250PE which is a safe bet.
LIKE YESTERDAY I WILL AGAIN SELL PE AND CE
OPTION BOTH ...becus more then 50 percent
movement eaten by gapup . WILL BW LONG TILL
MARKET STAY ABOVE 14000..if market goes around
14080 -14100 , will sell CE option and headege to
hedge Pe option .
level mention on chart.
1) Wed Market is a PED(Premium eating day) - Bidirectional so short strangle works better
2) you can sell top 3 leg CE & bottom 3 legs PE
3) Green lines are safe zones
4) Usually market is range-bound from 11 - 12/1PM Major moves happend before 10 and after 1PM/ 2PM
5) so better to square off before 12PM / 1PM of conservative traders
6) SL/Exit whenever it touches...
NIFTY is currently in a tight spot between 11250 and 11000 .
The increasing number of corona cases seems to have already been factored in and hence not causing any weakness to the index.
The huge rally from 10750 to 11200 in almost a weeks time has dried out now and nifty is now in a consolidation phase. From here onwards we can expect nifty to either touch 11500...
Data indicates weakness embedding in the markets.
Markets did see support coming in at 9726 levels. This would be an immediate support for the market. However, if retested, it may be vulnerable.
Similarly, BankNifty saw support coming in at 19740, this would be an immediate support as well. If market stabilizes tomorrow, BankNifty may outperform Nifty.
20 day EMA stays below 50 day EMA signals the continuation of bearish sentiment. Evening star pattern in daily chart confirms the resumption of bearish sentiment. Expect the index to stay below 22000 level for this expiry.
Trend continued to be in bearish territory on back of EMA (20 EMA below 50 EMA). Recent correction from the resistance of 140 level where roof of the downward trend line hovers.
On contrary, as MACD above zero expect the price to find support around 120 levels. In the recent past, the price comfortably found support around the same level twice.
Expect a bounce...
Price crossover above 200-EMA and 50-EMA signals that the trend in positive note. Expect the price to move upward in the coming days. Recent trough around 2500 level would lend necessary support in the coming days.
Expect the stock would expire above the support band of 2300 - 2400 levels for Aug series. Recommending option writers to sell 2300 Put Aug.
EMA 50-day and 200-Day signals the bearish trend. Recent reversal from 50-day EMA and MACD confirms the downward trend. In the coming days, the stock would retest the downside level of 200. Expect it to expire below 200-EMA which hovers around 240 level.
Recent bounce back from buying zone which is between 50-day and 200-Day EMA confirms the bullish trend. As well, MACD signals impetus of the existing trend. In the coming days, if any stay above 775 level would take the stock to next upside level comfortably. Expect it to expire above 700 level. Lot size: 1200
It witnessed a turnaround by finding a breakout from recent consolidation. As well, MACD confirms the trend reversal. Expect it would expire above 290 level for this expiry. Due to low liquidity, advised to execute the transaction by placing a sell order @ 1.5.