NSE:NIFTY is making overlapping moves. Idea is to stay patient and wait for breakout.
From current price action, NIFTY is all set to break out of 9400 tomorrow. I have sold calls, which will be in loss. But considering the market is consolidating, I am willing to take the risk of keeping those calls.
NSE:NIFTY opened gap up today. But it could not keep above last high of 9340 for the day. So this is still consolidation range. Till it breaks out this range , it may be safe to hold these positions. Now, because of sold puts, I have high risk of gap down opening. But from price action for last few days, I'm carrying these positions.
As discussed in weekly view...
Consider selling Nifty 30-April expiry
9100 Put option around 50
9600 Call option around 38
Max profit potential Rs 6600/-
Loss only if Nifty closes above 9688 or below 9012 on 30-April-2020
Take care & safe trading...!!!
Good Day Today for me. Mostly traded as per plan.
NIFTY is still in the large range of 8050 to 9150. But now, the breakout may have happened above 9050. Idea was to ride 8500 and 9200 OTM options. Then when NIFTY consolidated above 9000, I sold credit spread, which again turned out well as NIFTY expired above 9000.
Nifty Started with 2% selling on Open. Then it formed a range of 8100 and 8160, which was broken on the upside. But this breakout did not hold. Then later this range was broken on the other side below.
Overall, difficult day to day trade.
Expiry Day Today.
Global markets mostly down. I expected NIFTY to have ranged day because right from the start VIX was falling. I made mistake of committing to PUT sell on the lower end of range too quickly.
From the start, there were indications that NIFTY is going to have up day
SGX NIFTY and Asian Markets and DJI all up.
Then the first gap up got sold into. It was fast movement towards support. Idea was to keep buying the breakouts with limiting the risk with OTM Puts.
this is my view on nifty for next week.
below EMA 50 and the 8500 support that we have if it breaks 7100 is the target for me .
follow the chart for all the price action .
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DOW is range bound but bullish. Asian Markets are mildly negative.
Mostly expectation is to have consolidation day.
Action : Wait to see how NIFTY is ranging in the first 30 minutes to 1 hr. SGX Nifty is mildly down.
When NIFTY broke above 8500 in first 30 Mins, then sold PUT @69 and then covered it before FM's conference.
Date : March 25, 2020 8:00 AM
Monthly : Bearish.
Highly bearish candle. For any trend reversal or consolidation to happen, NIFTY should close above 8990 first and then 9500.
Weekly : Bearish.
Formation of 7th Lower Low is being formed in the current week. Weekly momentum has not shown any signs of slowing down. Any Higher high candle will be a first bounce and...
The Energy sector is weakening.
Further news of Imports which may hit the bottom line.
Already the picture is bleak as the average Asian gasoline profit margin this year as of Sept was $4.12 a barrel, down nearly 45% of its value when compared to the same period in 2018.
Trade Execution :
The 230 PE for Sep 26 expiry is trading at 1.60 odd & Cash Price is at...