Optionstrading
NSE:SBIN LongNSE:SBIN
#SBIN touch ATH and retraced to 520 levels. Sustaining above the level creates positive momentum.
Post Confirmation can try 520 CE.
If the level not sustain and swing change to negative use 510 level as support and can try PE !!
Happy Trading !!
Today Levels and results already shared, Almost all the scripts given good results !!
Levels perfectly captured and shared for FREE Everyday !!
NSE:DEEPAKNTR @ ResistanceNSE:DEEPAKNTR
#DEEPAKNTR reached ATH and retraced, now reaching to resistance level @ 2500 levels.
Sustaining above the level may give positive momentum.
Post confirmation, may try 2500 CE with SL of 2300.
Happy Trading !!
Check the Other levels shared and resulted today !!
#TATAPOWER - 42K
#MANAPPURAM - 17K
#DIXON - 21K
#IDFCFIRSTB - 15K
#IRCTC - 31K
#BANKBARODA - 27K
NSE:GMRINFRA LongNSE:GMRINFRA
#GMRINFRA reached ATH and retraces, now closed @ resistance level 40 levels, breakout and sustainability will give positive momentum !!
Post Confirmation, can try 40 CE
Levels shared today and resulted:
#IRCTC - 24K
#VEDL - 25K
#ONGC - 8K
#ICICIBANK - 36K
#CANBK - 12K
#AXIS - 20K
#BANKBARODA - 27K
#POLYCAB - 14K
#CIPLA-7K
#POWERGRID - 9K
#INDIGO - 22K
Happy Trading !!
NSE:DISHTV LongNSE:DISHTV
#DISHTV Reached to support @17.3 and bounced back, One can buy @ CMP and maintain the SL 16.5.
F&O One Can try 18CE, SL remains Same.
One More blasting day,
when the whole market is in RED,
We managed to close in green with huge profits..
On a Whole, today Profits more than one lac excluding Cash and MCX segment,
Check out the scripts shared and results bagged.
#SBIN - 16K
#BHARTIARTL - 26K
#BATAINDIA - 21K
#CANBK - 19K
#IDEA - 28K
#SANGAMIND - 16% (Cash not F&O)
Happy Trading.
Don't Like or Share.
NSE:SONATSOFTW BuyNSE:SONATSOFTW
#SONATSOFTW One of our MO selected #Multibagger showing positive results,
Check out the levels, After touching 633 level Never look back to that level and reached till 1010 and retraced to 961.
Sustaining above this level might give good momentum, Good above 1015.
Have a Happy trading.
BN Vertical Call Credit SpreadFollowing trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound.
A CE option mentioned below is a European Call Option, while a PE option is a European Put.
A hedger always buys these options and a speculator mostly sells one.
But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short strangle.
In combination with this, if we buy much farther CE and PE, the short strangle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle.
The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread.
Since this week the view is bearish , we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added.
Please leave a comment if you need further clarification on the following trade
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Buy 39500CE, Sell 38900CE
The history of trades of this trade model is in the following link:
docs.google.com
My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own.
Please leave a like if you like the trade ideas :)
NSE:INFY LongNSE:INFY
#INFY trading @ Resistance zone and breakout will give positive momentum
Above candle closure and be traded options too.
Have a Happy trading.
Levels Perfectly captured & shared for FREE Everyday !!
If you like the analysis, Hit like button and share it with your friends to extend your Support.
NSE:DELTACORP Hits all targets !!NSE:DELTACORP
NSE:DELTACORP Hits all targets and zooming to sky,
Levels shared were mentioned on chart.
Have a Happy trading.
Levels Perfectly captured & shared for FREE Everyday !!
If you like the analysis, Hit like button and share it with your friends to extend your Support.
Tata power. RSI Divergence in Tata power indicates the upcoming fall. we have a resistance at 172 so investors Book partial profits at 172 and full profits after it falls below 170then reenter positions at 155-140 levels. Traders can Short Tata power futures after it touches resistance and close below 170.option traders can buy put option after it starts to fall below 170
Sep21-W5: Nifty momentum forewarns of a correction (Sep27 to OctExactly as written last week, Nifty did remain below 5 EMA for initial couple of days but resumed its uptrend subsequently. The reversal till 15 EMA did not happen.
Even though Nifty is galloping ahead, the momentum indicators are exhausted now. There remain 3 parallel channels on my chart. The blue and green channels may only act as resistance from here on. Eventually, Nifty should settle somewhere near the middle of black channel. This can happen either during coming week or next week.
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
Consolidation - Between 18150 and 17700
Downtrend - If breach below 17700; to drop somewhere till 17250
Uptrend - If breach above 18150; to rise somewhere till 18450
Metals, steel and realty have been booming these days. I wonder if this is a good time to exit equity and invest in real estate?
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
How to place a logical stop-loss in Options?In general, a logical stop loss varies from one situation to another.
Some of the logical stop losses can be:
1. Swing high/low
2. Low of the Hammer/Inverted hammer
3. High of the Shooting star/Hanging man
4. Low of the demand zone
5. High of the supply zone
If you are trading in options, broadly there are 2 ways to set a stop loss. There are:
1. Place the SL using the spot chart
2. Place the SL using the Options chart
Explanation:
1. If you place a stop loss using the spot chart, then you don't have to see the Options chart. But you won't be able to calculate exact loss beforehand because the movement of spot vs options is not linear and depends on Option Greeks. This is a simpler method since you just have to see a single chart. Just enter and exit the trade using the spot chart only.
2. If you place the stop loss using the Options chart, you will be able to calculate the exact loss beforehand. For checking the options chart, you will have to use your broker's terminal or use some paid third-party site. Tradingview doesn't provide option charts. This method is a bit difficult as compared to the first method. The steps that you need to follow are:
a> Check the spot chart.
b> Execute your buy/sell order.
c> Notice the logical stop loss in the spot chart
d> Check the same SL in the options chart
4. Now open the options chart of the option that you bought/sold.
5. See the relative position of the stop loss in the options chart. (Whatever SL that you selected in the spot chart in step 3, select that same SL but now in options chart.)
In the above case, suppose you Shorted Nifty. So, you can either buy a PUT option or sell a CALL option. The stop loss in both cases is as follows:
If you buy a PUT option:
If you sell a CALL option:
6. Now that you have chosen your stop loss, just place your stop-loss order. That's it, you are done.
Read the post a few times and you will be able to understand the process. Don't complicate things. I hope you find this post useful. Also, if anyone is interested in getting a PDF version of this thread, then you can message me, I'll provide it.
Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk.
Happy learning. Cheers!
Indices Go All Over, Yet End Almost Jaise TheNIFTY 50 EOD ANALYSIS -09-09-21
IN SUMMARY
O / H / L / C
17312.85 / 17379.65 / 17302.7 / 17369.25
H-L = 77 points
VIX 13.94 / -3.26%
FII DII: +1127 Crores
Likely open: From the above, it looks like a flat to positive open but what may happen in the world markets tomorrow
CHART BASED CONCLUSIONS
A gap-down open was immediately bought into and NIFTY attempted to take out the closing high of yesterday and then gradually sold off.
It was a choppy day for the index being the expiry day as there were many tussles between the big heads. The range for the day was only 77 points.
NIFTY ended the day in mild green and also held 17300 levels as the low for the day was 17302. Some consolation from yesterday.
NIFTY WEIGHT LIFTERS & DRAGGERS
The Weight Lifters
NESTLE 14
BAJAJ FINSERV 07
BHARTI AIRTEL 07
TCS 04
GRASIM 03
TOTAL 35
The Laggards
SBI LIFE 11
HDFC BANK 08
RELIANCE 05
BAJAJ FINANCE 05
TITAN 04
TOTAL 33
Lifter - Draggers = +02
POSITIVES
NIFTY ended the day in the mild green.
NIFTY ended the week at a new ATH though it does not appear to be decisive.
NIFTY did not break 17300 on an intraday basis.
FIIs DIIs have together bought in excess of 1000 Crores.
NEGATIVES
NIFTY could not go anywhere near 17400.
BANK NIFTY range was just less than 300 points which were evident from the choppy movements and it ended in the red below 36700.
The leaders lack momentum and traction. KOTAK BANK appeared strong at the open but by EOD, it has closed on the 200 DMA line - fence-sitting as usual.
TRADING RANGE FOR W/B 13-09-21
17000-17200 is the support base.17400-450-500 may be the resistance area for NIFTY.
BANK NIFTY support stays at 36200-400 and resistance at 37000-37200.
INSIGHT / OBSERVATIONS
There were 3 spells on the 5-minute chart of BANK NIFTY that seemed to have been triggered by Algos. These occurred in the candle starting from 1305, 1435, and 1455. The range was more or less similar but the pact varied.
I observed this as I had my trades on and just as I thought I may have to exit the trade at a loss, it spiked and my trade was still in play. The 1455 candle and the one that followed it were game-changers.
I was waiting for a dip before 1500h and had kept 36500 CE ready to hit Buy. The premium plummeted and was down 40+ points to 92. As I opened the window and was about to hit the Buy button, I saw that it was back at 132. The point where I had thought of exiting! And then it kept spiking!
And in the final 10 minutes, it appeared to be an open secret that the expiry will be below 36700 as the index went above 36700 and immediately dipped and that sealed the fortunes of 36700 CE writers in green.
The above series of events makes me wonder if the expiry drama is all staged by those who have the muscle power. From a low of 92 on that candle of 1455-1500, it added 90 more points in premium and the Option expired at 182 .
Another interesting thing on the BANK NIFTY chart of 5 minutes chart is the W pattern - is this on account of psychology or algology?
What do you feel about this?
Thank you, and Happy Money Making!
Umesh
09-09-21
P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well.
NOTE --
This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.