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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 F&O Data analysis and trading viewNifty 13558 FIIs Net sold 8803 Contracts worth Rs 811.83 Cr Futures Data - Retail participants squared off 49 Long Contracts & squared off 6.48K Short contracts - FIIs squared off 2.34K Long Contracts and added 6.54K Short Contracts - Pro traders added 1.10K Long contracts and exited 1.35K Short contracts Call Option - Retail participants added 1.28 Lakh Call Long Contracts & added 1.15 lakh Call Short contracts - FIIs added 10.5 K Call Long Contracts and added 16.45 K Short Contracts - Pro traders added 34.46 K Call Long contracts and added 40.81 K Call Short contracts Put Option - Retail participants added 1.28 lakh Put Long Contracts & added 1.30 lakh Short contracts - FIIs added 8.53 K Put Long Contracts and squared off 118 Put Short Contracts - Pro traders added 28.14 K Put Long contracts and added 35.74 K Put Short contracts Nifty closed the day in green yesterday, however volumes were down 31.73% compared to the day before and Open Interest reduced slightly Bank Nifty volumes were 28.85% lower compared to the day before. FIIs are slowly exiting Long positions and retail participants are buy calls and puts in expectations of big movements. For any underlying to move, we need strong volumes, which is missing. These are signs of distribution happening. In our previous post also we had highlighted a range bound movement scenario for markets. And that is precisely what we are seeing. Nifty yo-yoing between 13400-13600. If blue line is taken out, we might see another move towards 13400 - 13380 level. If you are trading in Futures and Options, trading without proper analysis, you are more risk. If you want to get detailed report on a daily basis, message in private Best wishes Do Hit the Like button and Follow.... 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 - We do our best to ensure that the data we release is complete, accurate and useful. However, because we do not create the data, and because the processing required to make the data useful is complex, we cannot be liable for omissions or inaccuracies - The user expressly acknowledges that the Data may contain some nonconformities, defects, or errors. - Neither Indiamarketoutlook nor the author shall be liable for any claim for any loss, or other damage arising from access to or use of data or information
NSE:NIFTY
by indiamarketoutlook
NIFTY | RSI mild negative divergence | Sideways?NIFTY | RSI mild negative divergence | Doesn't looks bullish not a great time to short too. Expecting some range bound this week. Lets try Short straddle with hedge it becomes Iron Fly - 17/12/2020 Expiry - Credit Statergy - Defined and good risk reward CMP : 13513 Sell 13500 PE @ 101 Sell 13500 CE @ 108 Buy 13300 PE @ 37 Buy 13700 CE @ 36 Premium collecting : Rs.209/- Insurance : 73/- Max Loss : Rs.4815/- Max Profit : Rs.10110/- 1) No adjustment required if ready to accept this small loss of 4815/- 2) Margin required approx 62000/- 3) While exiting in between should exit from all the positions
NSE:NIFTY
by srikartiram
1
NIFTY TRADE SETUP FOR MONDAYNIFTY extended their journey over sixth consecutive week and scaled to a fresh all-time high of 13579. Going ahead, I believe 13600 would be the key level to watch, as only a decisive close above 13600 would lead to extension of ongoing rally towards 13900 mark as it is the 161.8% extension of the consolidation range (13200-12800), projected from breakout area of 13200, placed at 13847. Failure to sustain above 13600 would lead to consolidation in the 13600-13200 range amid stock specific action
NSE:NIFTY
by ASHWINIKUMAR2101
Nifty Chart set up, view and Strategy for 17 Dec expiry Nifty CMP 13533 Prima facie the chart set up reflects resistance at red line and Blue line likely to provide support F&O data reflects unwinding of position seen yesterday in Index Futures by FIIs after a long time. Given the set up, and Data analysis one may consider Selling Nifty 13700 Call Option between 45-55 (CMP 46) The strategy provides protection against loss for a rise up to 13745-13755 Today we are seeing a lot of activity in Put side too so even downside may be limited. We still feel this could be a range bound scenario For Risk Management Exit if today's closing is above 13600. We would reaffirm or reconsider our position on Monday after analyzing today's EOD F&O data Hit the Like button and follow for more such ideas. For details on Data Analysis report you can message in private. 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:NIFTY
by indiamarketoutlook
2
Nifty: Things to consider in Futures & Options tradingDear Trader, “We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.” – C.S. Lewis Many a times I see retail participants buying Call and Put options based on hope. Even on 10th December 2020, Data analysis suggested retail participants were buying 13400 Puts and 13500 Calls in hope of big movement which never materialized. Our F&O data analysis shared on 08th Dec 2020, when Nifty was at 13413 odd levels gave us an indication of a rangebound movement for Nifty index and accordingly a short strangle strategy was suggested to sell 13500 Call option and sell 13200 Put option for 10 Dec 2020 expiry. Nifty closed at 13478 which means the strategy gave us the desired results. One of the fundamental factors that can make a difference in your trading success depends on Are you willing to put in efforts to do your study / home work ? Let me put it in simple way for you to understand.. - In exams, who do you think has a higher probability to score better marks – one who has prepared well for exams or one who is giving exams based on luck - Who has a better chance of cracking an interview for a job – one who has prepared well for it or one who goes unprepared - at interview the interviewer asks questions and is willing to let go 10 candidates in search of that 1 Mr Right Fit candidate. Why if you are an interviewer you are willing to reject... Because the person getting selected will get salary but for Company that is an investment and we want to be sure that would be a good Return on Investment, Isn't it? - and Why as an interviewee we prepare for the interview... Because we want to start earning, right? If we can do this for the Company where we work or want to work, then why in trading (where we are dealing with our own hard earned money, we want ROI and want to start earning) we neglect the importance of these 2 factors... - ignore the importance of preparation. & - Can you let go 10 trading opportunities for that 1 opportunity that has a higher probability of success with better risk::reward ratio. Can you not be more selective in your trading decisions...? My Mission is to - empower retail traders with the right information before they enter a trade in Nifty Futures / Options, - rationalize your expectations - help you avoid make mistakes and - realize your true potential to be profitable by being selective and trading with knowledge… For details you can get in touch...!!! Follow and hit the Like button if you agree on the points above and want to improve... Let me know your views / thoughts in the comment section below. Take care & safe trading...!!!
NSE:NIFTY
by indiamarketoutlook
4
Nifty does our target of 13240 & 10 Dec expiry strategy Nifty CMP 13211 On 19 Nov 2020, when Nifty was at 12770, we had mentioned this Is Nifty setting up for 13240 Nifty does the target today making a high of 13250.30 We observe the Nifty to be trading in a rising parallel up channel Given the setup one may consider the following Short Strangle strategy in Nifty for 10 Dec expiry Sell Nifty 10 Dec expiry 13050 Put option around 45 & Sell Nifty 10 Dec expiry 13400 Call Option around 35 Total profit potential in strategy 75*(45+35)= Rs 6000/- Max Profit Yield potential 3.3% on Margin amount till 10 Dec 2020 Loss in strategy if Nifty closes above 13480 or below 12970 on 10 Dec 2020 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:NIFTY
by indiamarketoutlook