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Nifty & Bank Nifty Options Trading1. Understanding Nifty & Bank Nifty as Option Underlyings Nifty 50 A diversified index covering 13 sectors, representing India’s overall equity market. Lower volatility compared to Bank Nifty Stable and predictable movements Preferred by positional traders and institutional hedgers Bank Nifty Composed of major banking stocks, highly sensitive to interest rates, RBI actions, liquidity flows, and global banking events. Extremely high volatility Fast intraday swings (frequently 300–700 points in a day) Preferred by aggressive intraday option buyers and advanced traders Liquidity in both instruments is extremely high, making them ideal for buying and selling options. 2. How Index Options Work Option Types You deal with two primary instruments: Call Options (CE) – You profit when the index goes up Put Options (PE) – You profit when the index goes down Expiry Cycles Both Nifty and Bank Nifty have: Weekly expiry Monthly expiry Quarterly (some strikes) Bank Nifty earlier had only weekly expiry on Thursday, but now expiries rotate due to SEBI’s rules. Nifty expires every Thursday as usual (unless it is a trading holiday). Lot Sizes Nifty lot size: typically 50 units Bank Nifty lot size: typically 15 units (These vary slightly during periodic revisions.) 3. Pricing Dynamics: Why Option Premiums Move Option premiums are governed by: i. Intrinsic Value The real, quantifiable value. CE intrinsic value = Spot price – Strike PE intrinsic value = Strike – Spot ii. Time Value (Theta) Time value decreases as expiry comes closer. Buyers get hurt by theta decay Sellers benefit from theta decay Bank Nifty has rapid intraday time decay, so sellers often dominate. iii. Volatility (Vega) Bank Nifty has higher volatility, meaning: Higher premiums Larger impact of news Bigger risk and reward potential iv. Delta Measures how quickly the premium moves with respect to the index. Example: Delta 0.50 → Option moves 50% of index move ATM options typically have delta ~0.5 Bank Nifty deltas shift faster due to rapid price movement. 4. Why Nifty & Bank Nifty Are Perfect for Options Trading 1. Deep liquidity Instant order execution, tight spreads. 2. Weekly expiries Fast premium decay → perfect for option sellers Low cost → attractive for option buyers 3. High volatility (Bank Nifty) Good for intraday scalping. 4. Large participation FIIs, DIIs, proprietary desks, retail traders provide continuous order flow. 5. Common Trading Styles A. Option Buying Best for: Trending markets Breakout strategies Intraday volatility plays Pros: Limited risk (premium paid) High returns when market trends strongly Cons: Theta decay kills slow markets Needs precise timing and direction Bank Nifty is favored by buyers due to sudden moves. B. Option Selling Best for: Range-bound markets High probability income Weekly expiry trading Pros: Higher win-rate Time decay works in seller’s favor Cons: Potential for large losses if market trends Must use hedging Nifty is preferred by conservative sellers due to calmer moves. Bank Nifty selling is profitable but demands skill and hedging discipline. 6. Key Strategies Used in Nifty & Bank Nifty 1. ATM/ITM Scalping (Intraday) Used for 1–3 minute charts. Buyers use fast entries on breakouts; sellers sell on reversals. 2. Straddles Sell ATM CE + ATM PE. Ideal when expecting low volatility. Highly used on: Expiry days Fridays in monthly series 3. Strangles Sell OTM CE + OTM PE. Safer than straddles, with wider breathing space. 4. Credit Spreads Bear call spread Bull put spread Controlled-risk selling strategies. 5. Iron Condor For sideways markets with limited risk. 6. Directional Option Buying Buyers typically look for: Trendline breakouts VWAP bounces CPR (Central Pivot Range) breakout Previous day high/low rejection Bank Nifty gives the best directional follow-through. 7. Hedge-Based Positional Trades Nifty traders often hold: Bull Call Spreads Bear Put Spreads Calendar spreads for monthly swings. 7. Expiry Day Dynamics Expiry days (especially Thursday) are unique: For Nifty & Bank Nifty Accelerated theta decay Frequent stop-hunt wicks Sudden option premium collapse Wild moves in the last 30 minutes Scalpers thrive; beginners get trapped. Option selling is usually profitable on expiry days, but only if: You hedge You manage risk You avoid naked selling Option buying works only during big directional moves or volatility spikes. 8. Risk Management (Non-Negotiable) Without risk management, Nifty & Bank Nifty options will punish you. Follow these guidelines: 1. Use Stop-Loss Always Options move insanely fast. Bank Nifty can wipe out capital in minutes. 2. Never Sell Naked Options Unhedged selling can cause large losses. 3. Control Position Size Risk per trade should not exceed: 1–2% of capital (positional) 0.5–1% (intraday) 4. Avoid Overtrading Chasing every move is a losing habit. 5. Understand News Events Avoid trading near: RBI policy Budget FOMC Inflation data Major geopolitical news These events create sudden spikes. 9. Psychological Discipline Options trading is 70% psychology. Don’t chase runaway premiums Don’t revenge trade Don’t hold losing trades hoping they “come back” Don’t keep adding to a losing position If you can stay calm during fast index swings, you will trade better than most participants. 10. Final Practical Advice I’ll be direct with you—Nifty & Bank Nifty options can help you grow your capital fast only if you learn structured trading. Otherwise, they can drain your account. Here’s the right mindset: Learn the basics thoroughly Trade small and build skill Specialize in one or two strategies Stick to charts, not emotions Think like a risk manager first, trader second If you invest time in practice and discipline, index options can become your strongest trading edge.
NSE:MCXEducation
by TechnicalExpress
ERIS 1 Day View 📊 Current Price & Range Last traded around ₹1,669 – ₹1,672 Today’s observed intraday range so far: Low ~ ₹1,651.6 and High ~ ₹1,679.2. Previous close was ~ ₹1,669.60. 🔍 Key Technical Levels (1-Day) Support levels to monitor: 1. ~ ₹1,650 mark – near today’s intraday low (~1,651). 2. A stronger buffer may lie around ₹1,620-1,630, given prior trading zones (though exact MA data not fully pulled). 3. If price breaks decisively below ~₹1,650, the next meaningful lower zone might be nearer the 52-week low area (~₹1,100) but that’s much further away. Resistance levels to monitor: 1. Immediate resistance near today’s high ~ ₹1,679-1,680. 2. If momentum builds, next resistance around ~ ₹1,700-₹1,720 area. 3. The 52-week high (~₹1,910) remains well above current price and acts as long-term cap. ⚠️ Notes & Caveats These levels are based on publicly available price ranges today; they do not include detailed moving-average levels or intraday support/resistance lines from charting software. Always consider external risks: market sentiment, pharma sector news, regulatory updates, earnings surprises for Eris. Short-term trading involves higher volatility and increased risk; these setups should be used with proper stop-losses and position sizing.
NSE:ERISLong
by TechnicalExpress
Index Rebalancing Impact1. Why Index Rebalancing Happens Indices are meant to represent a particular segment of the market. Over time, however: Some companies grow while others shrink. Market capitalizations change. New leaders emerge in sectors. Corporate actions (mergers, delistings, bankruptcies) occur. Market liquidity and trading patterns evolve. To maintain accuracy and credibility, index providers periodically evaluate components based on criteria such as: Free-float market capitalization Liquidity (trading volumes and turnover) Sector representation Corporate governance and regulatory compliance Financial performance Rebalancing ensures that the index remains aligned with the current structure and performance of the market. 2. How Rebalancing Works The rebalancing process typically includes: a. Announcement Phase Index providers (NSE Indices, MSCI, FTSE Russell, S&P Dow Jones) release the final list of changes ahead of implementation, typically 2–4 weeks in advance. This gives institutional investors time to prepare. b. Execution Day On the official rebalancing date—often coinciding with the end of a quarter—index funds and ETFs must: Buy stocks that are being added. Sell stocks that are being removed. Adjust weightings for stocks that remain but whose weight has changed. This creates heightened trading activity, especially in the closing session (closing auction window). c. Post-Rebalance Adjustment Stocks may continue to adjust over the next few sessions as traders reposition and arbitrage strategies unwind. 3. Impact of Index Rebalancing A. Price Impact on Stocks Being Added When a stock is added to a major index: Index funds buy the stock, leading to strong demand. Prices often surge in the short term (known as the index inclusion effect). Liquidity improves due to higher institutional participation. Valuations may rise as more ETFs and passive funds accumulate holdings. This effect is especially pronounced in indices with large passive following such as Nifty 50, S&P 500, or MSCI Emerging Markets. However, this rise may be temporary—after the initial bounce, prices may stabilize or even decline as speculative traders exit. B. Price Impact on Stocks Being Removed Stocks removed from the index face: Forced selling by index funds. Immediate drop in price due to excess supply. Reduced liquidity as passive funds exit. Potential long-term decline in visibility and analyst coverage. This is called the index deletion effect and can significantly hurt sentiment. C. Impact on Index Levels Rebalancing can change: Sector weights (e.g., financials vs. IT) Market-cap distribution Risk and volatility characteristics If high-weight stocks are added or removed, the impact on the overall index value can be sizeable. D. Impact on Trading Volumes and Liquidity Rebalancing typically results in: Surge in trading volumes, especially in the last hour. Increased delivery-based buying from funds. Temporary widening of spreads due to volatility. Short-term liquidity mismatches, particularly in mid-cap or small-cap rebalancing. Index rebalancing days are often among the highest volume days of the year. E. Impact on ETFs and Passive Funds Passive funds must replicate the index exactly. Rebalancing forces: High turnover in ETF portfolios. Transaction costs, which may be passed on to investors. Tracking error risks if markets are too volatile on rebalancing day. This mechanical trading adds to price distortions. F. Impact on Derivatives Markets Index rebalancing impacts: Nifty Futures and options due to hedging adjustments. Volatility around expiry, especially if rebalancing coincides with derivatives expiry. Straddle and strangle traders who position based on anticipated price swings. Quant traders and arbitrage desks particularly exploit these windows. G. Impact on Market Sentiment Inclusion in a major index is often seen as: A sign of strong fundamentals. Higher institutional confidence. Better corporate governance. Removal, on the other hand: Signals deterioration. May reduce analyst and investor focus. 4. Who Benefits from Index Rebalancing? i. Short-Term Traders They profit from: Price surges in stocks being added. Price drops in stocks being removed. Volatility spikes on execution day. High-frequency traders (HFTs) and algorithmic funds dominate this space. ii. Arbitrageurs They exploit price inefficiencies created by: Temporary demand-supply imbalance. Tracking errors in ETFs. Lag between announcement and execution. iii. Corporates Being added to an index increases visibility and prestige, potentially lowering cost of capital. 5. Risks and Challenges of Index Rebalancing a. Excess Volatility Prices swing sharply on announcement day and execution day, often unrelated to fundamentals. b. Temporary Distortions Stocks may become: Overvalued after inclusion. Undervalued after exclusion. These distortions eventually normalize but create risk for traders. c. Market Manipulation or Speculation Some traders attempt to anticipate rebalancing outcomes, leading to front-running—buying in advance of the official announcement. d. Overdependence on Indexing As passive investing grows, mechanical buying/selling can destabilize markets during rebalances. 6. Global vs. Local Impacts MSCI Rebalancing: impacts global flows in emerging markets including India. Nifty/Sensex Rebalancing: impacts domestic flows. Sectoral Index Rebalancing: affects specific industries. Global indices often cause bigger price swings due to foreign fund flows. Conclusion Index rebalancing is a critical process in ensuring that stock market indices remain accurate and relevant. While it may seem purely technical, its impact is widespread—from stock price movements and liquidity changes to investor sentiment and fund flows. For traders, rebalancing events offer opportunities to capitalize on predictable demand patterns, but they also come with significant volatility-related risks. For long-term investors, while the day-to-day swings may not matter much, understanding how rebalancing works can help explain sudden price movements and shifts in market dynamics. Overall, index rebalancing reinforces the efficiency and representativeness of financial markets, but it also introduces short-term inefficiencies that active participants can exploit.
Education
by TechnicalExpress
Smart Money Secrets1. The Psychology Behind Smart Money Movement Smart money rarely buys at the top or sells at the bottom. Instead, institutions accumulate positions slowly during periods of low volatility and distribute them quietly near tops. The retail crowd does the opposite—buy at tops out of fear of missing out (FOMO) and sell at bottoms due to panic. Institutions exploit this behavior by: Creating liquidity traps Triggering stop-loss hunts Pushing the price into zones where retail traders enter in the wrong direction Fading false breakouts Their goal is simple: buy from emotional sellers, and sell to emotional buyers. Understanding this psychology is crucial because following smart money usually leads to high-probability trades, while following retail noise often leads to losses. 2. Liquidity: The Fuel of Smart Money A core smart money secret is that price moves where liquidity exists, not where emotions point. Liquidity refers to regions where many orders are present—like stop losses, pending orders, and institutional blocks. Smart money actively targets: Stop loss clusters Liquidity pools above swing highs Liquidity pools below swing lows Areas of imbalance and inefficiency Example: When many retail traders place stop losses below a support level, institutions may deliberately push the price below that level to trigger those stops, collect liquidity, and then reverse the price upward. This phenomenon is called a liquidity grab. 3. Market Structure and Smart Money Institutions trade based on market structure, not indicators. They analyze: Higher highs and higher lows Break of structure (BOS) Change of character (CHoCH) Fair value gaps (FVG) Order blocks (OB) When smart money wants to reverse a trend, they leave signals through these structural changes. Traders who understand the smart money model (SMM) can identify early trend reversals long before retail indicators show them. 4. Order Blocks – Smart Money Entry Zones An order block represents a candle or zone where institutions placed significant buy or sell orders. After these zones are formed, price often returns to them to “mitigate” or rebalance institutional positions. Types of order blocks: Bullish Order Block: Last down candle before an upward expansion Bearish Order Block: Last up candle before a downward expansion When price returns to an order block: Institutions re-enter or add to positions High-probability trades form Retail traders are often on the wrong side Order blocks are one of the strongest smart money signals for entries. 5. Fair Value Gaps – Imbalances in Price Smart money often causes rapid price moves that leave gaps between candles. These are called Fair Value Gaps (FVGs) or imbalance zones. Why they form: Large institutions place massive orders Market doesn’t have enough liquidity to fill all levels Price “jumps” leaving an imbalance Smart money expects price to return to fill these gaps because they represent inefficiencies in the market. Traders use these zones for entry confirmations and profit targets. 6. Stop Hunts and Liquidity Sweeps One of the biggest secrets in smart money behavior is stop hunting—a deliberate attempt to trigger retail stop losses. Reasons for stop hunts: To collect liquidity for institutional entries To trap retail traders in the wrong direction To create volatility before the actual move Common patterns: Price dips below a major support and shoots up Price wicks above a resistance and falls sharply Long wick candles near order blocks Retail traders often perceive these as breakouts, but smart money uses them for liquidity collection. 7. Inducement – The Trap Before the Real Move Inducement is a clever technique used by smart money to lure traders into false setups. Example: Price approaches a resistance level multiple times, making retail traders think a breakout is coming. Just before the real move happens: Price sweeps the liquidity above resistance Then reverses back into smart money’s direction Inducement helps institutions create liquidity for their own trades. 8. Volume as a Smart Money Indicator While price can be manipulated, volume rarely lies. Smart money activity is marked by: High-volume candles at turning points Volume spikes during liquidity sweeps Decreasing volume during pullbacks (institutional accumulation) Volume Profile and VWAP are tools many traders use to detect institutional footprints. 9. Smart Money and Algorithmic Trading Modern smart money behavior is driven by algorithms operated by major institutions. These algorithms: Scan liquidity zones Execute orders at optimal prices Analyze price inefficiencies Prevent slippage Algorithms follow rules based on order flow, not indicators. This is why price often moves in patterns consistent with smart money concepts, such as BOS, CHoCH, FVGs, and OB mitigations. 10. How Retail Traders Can Use Smart Money Secrets To trade like smart money, retail traders should: 1. Follow Liquidity, Not Emotions Identify where liquidity rests: Equal highs Equal lows Swing points Consolidation zones These are areas institutions target. 2. Identify BOS and CHoCH Break of structure reveals trend continuation. Change of character signals trend reversal. 3. Use Order Blocks and FVGs for Entries These are high-probability institutional zones. 4. Avoid Trading Breakouts Blindly Most breakouts are manipulations. Wait for liquidity sweeps. 5. Understand Timing Smart money moves often occur during: London Session Open New York Session Open Major economic news Avoid trading in the dead zones between sessions. 6. Stop Using Too Many Indicators Indicators lag behind price. Smart money trades price action and liquidity. 11. Why Smart Money Secrets Matter Following smart money helps traders: Avoid bull and bear traps Enter trades at institutional pricing Improve risk-reward ratios Understand why price moves Gain confidence through structure-based trading Instead of being manipulated by market makers, traders learn to trade with them. Conclusion Smart money secrets revolve around understanding how institutions operate—where they enter, where they exit, and how they manipulate liquidity. By analyzing market structure, order blocks, liquidity zones, BOS/CHoCH signals, and fair value gaps, traders gain deep insight into true market behavior. While retail traders often trade based on indicators and emotions, smart money trades based on liquidity and structure. Learning these principles allows any trader to align with institutional order flow, trade high-probability setups, and avoid common retail pitfalls.
NSE:HDFCBANKEducation
by TechnicalExpress
Cryptocurrency as a Digital AssetUnderstanding Cryptocurrency as a Digital Asset A digital asset is anything stored electronically that can provide value. Examples include images, documents, software, and digital currencies. Cryptocurrency falls within this category but stands apart because it is programmable, transferable, scarce, and secured through cryptographic algorithms. A cryptocurrency is a digital or virtual currency that uses blockchain technology and cryptography to secure transactions, verify ownership, and regulate the creation of new units. Unlike traditional money issued by governments (called fiat currency), cryptocurrencies are usually decentralized, meaning no single authority controls them. The idea behind cryptocurrency is to create a trustless system, where people can transact securely without needing banks, payment processors, or intermediaries. Key Features of Cryptocurrency 1. Decentralization Most cryptocurrencies operate on a distributed network of computers (nodes) worldwide. Instead of being stored on one central server, the entire ledger of transactions is shared among thousands of participants. This decentralized nature: Reduces the risk of manipulation Prevents single points of failure Makes the system transparent and censorship-resistant Bitcoin, for example, is maintained by a network of miners and nodes spread across the globe rather than by any government or corporation. 2. Blockchain Technology Blockchain is the underlying technology that makes cryptocurrencies possible. It is a chain of blocks, where each block contains: Transaction data A timestamp A cryptographic hash Once data is added to the blockchain, it becomes nearly impossible to alter, ensuring immutability and security. Blockchain acts as a public ledger. Anyone can view transactions, but identities are hidden behind cryptographic addresses, offering both transparency and privacy. 3. Cryptographic Security Cryptocurrencies use advanced cryptography to secure transactions and control the creation of new units. Public-key cryptography ensures that: You can share your public address safely Only you can spend your funds using your private key The private key acts as a digital signature, proving ownership of the asset. 4. Limited Supply and Scarcity Many cryptocurrencies have a fixed supply, which gives them scarcity—one of the key factors that drive value. For example: Bitcoin has a maximum supply of 21 million coins This scarcity creates a digital form of gold In contrast, fiat currencies can be printed endlessly, causing inflation. Limited supply helps certain cryptocurrencies hold value over time. 5. Peer-to-Peer Transactions Cryptocurrency enables direct transactions between users without intermediaries. This: Reduces transaction fees Speeds up cross-border payments Increases accessibility for the unbanked population A Bitcoin transaction can be sent across continents within minutes, regardless of banking systems or government restrictions. Types of Cryptocurrencies Cryptocurrencies can be classified based on their purpose and technology. 1. Bitcoin (BTC) – Digital Gold Bitcoin was the first cryptocurrency, introduced in 2009 by the anonymous creator Satoshi Nakamoto. Its main purpose is to act as: A store of value A medium of exchange A hedge against inflation Bitcoin is often referred to as digital gold due to its scarcity and decentralized nature. 2. Altcoins – Alternatives to Bitcoin Thousands of cryptocurrencies followed Bitcoin, called altcoins. Examples include: Ethereum (ETH): A blockchain that supports smart contracts and decentralized applications (dApps) Ripple (XRP): Focused on fast and cheap international payments Litecoin (LTC): Faster and lighter version of Bitcoin Each altcoin has unique features or improvements over Bitcoin. 3. Stablecoins Stablecoins are cryptocurrencies whose value is pegged to stable assets like the US Dollar or gold. Examples: USDT (Tether) USDC (USD Coin) They are widely used in trading and decentralized finance because they reduce price volatility. 4. Tokenized Assets and Utility Tokens Many blockchains allow digital assets to be created on top of them. These tokens represent: Access to services (utility tokens) Ownership in projects (security tokens) Real-world assets like real estate or stocks Tokenization expands the use of blockchain beyond currency. How Cryptocurrency Works as a Digital Asset 1. Creation of New Units New cryptocurrency units are created in different ways: Mining: Solving complex mathematical problems (Bitcoin, Litecoin) Staking: Locking cryptocurrency to validate transactions (Ethereum 2.0, Cardano) Algorithmic issuance: Based on demand and supply mechanisms Mining and staking secure the network and process transactions. 2. Storing Cryptocurrency Cryptocurrencies are stored in digital wallets, which can be: Hot wallets: Connected to the internet (mobile or desktop apps) Cold wallets: Offline storage (hardware wallets or paper wallets) Wallets store private keys, not the coins themselves. 3. Transferring Ownership A cryptocurrency transaction involves: Sending funds from one address to another Verifying the transaction through miners or validators Adding it to the blockchain This digital transfer of ownership is secure, fast, and irreversible. Why Cryptocurrency Has Value Cryptocurrency holds value due to several factors: 1. Scarcity Fixed supply creates demand over time. 2. Utility Smart contracts and decentralized applications give certain cryptocurrencies real-world use cases. 3. Decentralization People value assets not controlled by governments. 4. Trustless System Blockchain eliminates the need for middlemen. 5. Global Acceptance Businesses, investors, and governments are increasingly adopting cryptocurrencies. Advantages of Cryptocurrency as a Digital Asset Borderless transactions Lower fees compared to traditional banking Secure and transparent system 24/7 market accessibility High liquidity in major coins Supports financial inclusion Cryptocurrencies also introduce entirely new industries: Decentralized finance (DeFi) Non-fungible tokens (NFTs) Web3 applications Risks and Challenges Despite advantages, cryptocurrencies face risks: Price volatility Regulatory uncertainties Scams and hacks Loss of private keys leading to loss of funds Awareness and proper risk management are essential. Conclusion Cryptocurrency, as a digital asset, represents a major shift in how value is created, stored, and transferred. Powered by blockchain technology, it enables decentralized trust, global accessibility, and programmable financial systems that challenge traditional banking models. While it offers immense opportunities, it also requires careful understanding due to its risks and evolving regulatory landscape. As technology matures, cryptocurrency is likely to play an even greater role in global finance and digital ownership systems.
CRYPTO:BTCUSDEducation
by TechnicalExpress
Part 7 Trading Master Class With Experts Non-Directional Strategies Used when markets are expected to be sideways or volatile. 1. Straddle (Buy Call + Buy Put) Profit from high volatility in any direction. 2. Strangle Cheaper version of straddle, using OTM options. 3. Iron Condor Sell OTM call and put spreads. Used for stable markets to earn premium. 4. Butterfly Spread Low-cost strategy for low volatility expectations. These strategies help traders benefit from volatility, time decay, and neutral price movements.
CRYPTO:BTCUSDEducation
by SkyTradingZone
Earnings Season Trading1. What Makes Earnings Season Important? Earnings reports reveal the true financial health of a company. This data often contradicts or validates market expectations built over the previous quarter. When results surprise on the upside or downside, stocks can react with sudden gaps, breakouts, or reversals. Because these results directly influence valuation metrics like P/E ratio, growth trajectory, and forward guidance, institutions and retail traders adjust their positions, creating volatility. Additionally, the commentary provided during earnings calls—about demand trends, inflationary pressures, capex plans, and future growth—shapes market sentiment for weeks or months. Sectors such as banking, IT, pharmaceuticals, autos, and FMCG often show correlated moves during earnings, offering broader index-level opportunities. 2. Key Components of an Earnings Report To trade earnings effectively, you must understand the elements of the quarterly report: a. Revenue (Top Line) Measures the total sales generated. Higher-than-expected revenue indicates strong demand. b. Net Profit / EPS (Bottom Line) Earnings per share (EPS) is the most watched metric. A beat or miss relative to analysts’ expectations heavily influences stock reactions. c. Operating Margins Margin expansion or contraction shows pricing power, cost control, and business efficiency. For some sectors—like FMCG or metals—margins matter more than revenue. d. Guidance Future expectations provided by management. Often, guidance has more impact than the current quarter’s results because markets are forward-looking. e. Commentary Insights on economic conditions, demand trends, and risks can swing sentiment quickly. Understanding these elements helps traders anticipate market reaction better. 3. Why Stocks Move So Much During Earnings? Stocks move based on: a. Expectation vs Reality Markets don’t move on results alone—they move on surprises. Positive surprise → strong rally Negative surprise → sharp fall In-line results → muted reaction or volatility fade b. Market Sentiment Even a positive result can lead to selling if the stock had already run up before earnings. This is called “buy the rumour, sell the news.” c. Options Positioning Options traders often take hedged positions before earnings. When implied volatility (IV) collapses after results, this can create large directional moves, especially in stocks like Apple, Google, Infosys, Reliance, or HDFC Bank. d. Institutional Flows Big players re-balance their portfolios based on earnings quality, driving big price swings. 4. Trading Strategies During Earnings Season Earnings season offers multiple profitable strategies, but each comes with specific risks. Here are the most effective ones: **1. Pre-Earnings Momentum Trading Some stocks show clear directional movement as earnings approach. If sentiment is bullish and analysts expect a beat, stock may rise before results. Conversely, if the company already warned of weak numbers, traders short it before earnings. But this strategy is risky—the stock can gap against you post-results. **2. Trading Earnings Gaps Once results are released, stocks often open with big gap ups or gap downs. Traders look for: Gap continuation (if stock breaks above or below resistance convincingly) Gap fading (if the reaction seems exaggerated) For example: A stock gaps up 10% on fantastic results but immediately fails to hold levels → short opportunity. **3. Post-Earnings Trend Trading The safest earnings strategy. Instead of gambling on the announcement, traders wait for the results to come out and trade the trend that follows. If results are strong and stock sustains above key levels, you enter long and ride the trend for days or weeks. Advantages: No overnight risk You trade based on confirmed data Institutional flow supports the move **4. Options Trading – Implied Volatility Play Earnings season sees a spike in IV. After results, IV collapses sharply (IV crush). Strategies to use: Straddles / Strangles before earnings (for expected big move) Iron condors (if expecting limited movement) Post-earnings debit spreads (lower IV = cheaper premium) Options trading around earnings is powerful but requires skill and risk-management. 5. Risk Management During Earnings Trading Earnings season is profitable but risky. Here are essential risk-control rules: a. Avoid Overleveraging Extreme volatility can wipe out leveraged positions instantly. b. Use Stop-Loss Orders Volatility spikes can trap traders in losing trades. SLs protect capital. c. Position Sizing Limit exposure to a single stock to 2–5% of portfolio during earnings week. d. Never Hold a Large Position Overnight Unexpected results can cause massive gaps. e. Analyze Sector Trends If the entire sector is weak, even good results may not lead to big rallies. 6. Fundamental and Technical Tools for Earnings Trading Fundamental Tools Analyst estimates (Bloomberg, Reuters) YoY and QoQ performance trends Management guidance Peer performance Macro environment (inflation, interest rates, global cues) Technical Tools Support and resistance levels Volume analysis Gap trading indicators RSI, MACD, ADX for momentum Candlestick signals around results Combining both technical and fundamental analysis gives a competitive edge. 7. How Institutions Trade Earnings Institutional investors like FIIs, DIIs, and mutual funds: Focus more on long-term guidance than short-term results Increase positions in companies showing stable margin improvement Reduce positions if management commentary signals future weakness Hedge through index options rather than individual stocks Understanding institutional behavior helps predict sustained trends. 8. Common Mistakes Traders Should Avoid • Gambling on earnings direction Predicting results is risky; avoid blindly holding through results. • Ignoring guidance Even excellent results can cause a fall if forward guidance is weak. • Trading too many stocks at once Focus on high-liquidity names only. • Not checking macro events Inflation data, Fed meetings, RBI policy can overpower earnings impact. Conclusion Earnings season is a golden period for traders, packed with volatility, opportunity, and market-shaping trends. To trade successfully, it’s essential to understand the relationship between expectations and outcomes, interpret earnings reports correctly, and apply robust risk-management techniques. The best approach is a balanced one—avoiding excessive risk while taking advantage of clear post-earnings trends. When executed well, earnings season trading can significantly boost your returns and provide valuable insights into market behavior.
NSE:INFYEducation
by TechnicalExpress
TVSMOTOR 1 Day Time Frame 📌 Key levels (approximate) Pivot (classic) for recent day: around ₹ 3,408.73. Resistance levels: R1 ≈ ₹ 3,448.47 R2 ≈ ₹ 3,510.43 R3 ≈ ₹ 3,550.17 Support levels: S1 ≈ ₹ 3,346.77 S2 ≈ ₹ 3,307.03 S3 ≈ ₹ 3,245.07 🎯 What to watch for possible trade decisions Bullish scenario: If price breaks above the pivot (~₹3,409) and holds above R1 (~₹3,448), a move toward R2 (~₹3,510) or higher may be possible. Bearish scenario: A break below S1 (~₹3,347) could open risk toward S2 (~₹3,307) or S3 (~₹3,245). Neutral/Ranging: The stock may also trade between ~₹3,347 and ~₹3,448 while the trend remains unclear.
NSE:TVSMOTORLong
by Knowledgehub
Intraday Scalping Tips1. Trade Only High-Volume Stocks, Indices, or Currency Pairs Liquidity is the lifeline of scalping. You need instruments with tight spreads, fast order execution, and consistent movement. Why High Volume Matters Ensures quick entry and exit. Reduces slippage during volatile periods. Offers clear price patterns and clean breakouts. Allows placing large position sizes without affecting price. Popular choices include: Indices: Nifty 50, Bank Nifty, S&P 500 Stocks: Reliance, TCS, HDFC Bank, Tesla (in US market) Forex: EUR/USD, GBP/USD, USD/JPY Commodities: Gold, Crude Oil Avoid low-volume or penny stocks — they often trigger false breakouts. 2. Use the Right Time Frames for Scalping Successful scalpers combine multiple time frames to confirm entries and exits. Recommended Setup 1-Minute Chart: Entry timing and trade execution 5-Minute Chart: Short-term trend identification 15-Minute Chart: Market structure or bias Daily Chart: Major support and resistance How It Works If the daily and 15-minute chart show bullish bias, and the 1-minute chart forms a breakout pattern, the probability of success increases. Multi-time-frame confirmation reduces false signals and emotional trades. 3. Use Key Indicators with Precision (But Don’t Overload) Scalping requires fast decisions, so keep indicators minimal. The best combinations are: a) Moving Averages (MA) EMA 9 & EMA 21: Identify short-term momentum EMA 9 crossing above EMA 21 = bullish momentum EMA 9 crossing below EMA 21 = bearish momentum b) VWAP (Volume Weighted Average Price) VWAP acts as an intraday support/resistance for institutions. Price above VWAP = bullish environment Price below VWAP = bearish environment c) RSI (Relative Strength Index) Use RSI with 70/30 or 80/20 levels to spot exhaustion. d) Supertrend Helps identify direction and allows trailing stops. Tip: Combine VWAP + EMA + RSI for powerful scalp entries. 4. Master Key Scalping Strategies a) Breakout Scalping Trade breakouts of: Previous day high/low Intraday supply/demand zones Round numbers (e.g., 100, 500, 1000 levels) Look for volume confirmation to avoid traps. b) Pullback Scalping Enter when price returns to: EMA 9/21 VWAP Trendline These pullbacks offer low-risk entries. c) Range Scalping When the market is sideways: Buy at range support Sell at range resistance Perfect for low-volatility phases. d) Quick News-Based Scalping Scalpers take advantage of sudden volatility during events like: FOMC meetings RBI policy announcements Non-farm payroll Quarterly earnings This requires high experience and fast execution — beginners should avoid high-volatility news setups. 5. Maintain Strict Risk Management Scalping involves multiple trades, so losses must be extremely small. Golden Rules Risk 0.5%–1% per trade Use tight stop losses (0.3%–0.5% of price) Target 1:1 or 2:1 risk-reward Never average loss-making trades Why Stop Loss Is Mandatory Without strict SL, one wrong trade can eliminate 10 successful scalps. 6. Use Pre-Defined Entry and Exit Rules Emotion has no place in scalping. You must follow clear rules: Enter only after a candle closes over key levels Avoid chasing fast-moving candles Book profit quickly if momentum slows Exit immediately when your stop is hit Consistency comes from mechanical execution. 7. Focus on Market Timing Scalping works best when volatility and liquidity are highest. Best Times to Scalp Opening hour: First 30–45 minutes Mid-session: Breakouts or trend continuation Power hour: Last 1 hour of market Avoid lunch hours — the market becomes slow and choppy. 8. Watch the Order Flow (Advanced Tip) Order flow tools like: Level 2 Depth of market (DOM) Time & Sales (Tape reading) Help identify: Hidden buying/selling pressure Fake breakouts Liquidity zones Scalpers use order flow to time ultra-precise entries. 9. Keep Your Mind Calm and Avoid Overtrading Scalping demands high focus. Overtrading leads to impulsive decisions. Rules to Avoid Burnout Take breaks after every 3–5 trades Limit to a maximum of 10–15 trades per day Avoid revenge trading Stick to your strategy, not emotions Mental exhaustion is one of the biggest enemies for scalpers. 10. Practice on Demo Before Going Live Scalping is not suitable for complete beginners. A demo account helps you: Understand order execution Practice SL placement Backtest fast setups Improve timing Once you achieve consistency, switch to live trading with small capital. 11. Keep a Trade Journal A trading journal helps identify: Most profitable strategies Common mistakes Best market conditions for your style Winning and losing streak patterns Document: Entry reason Exit reason Chart screenshots Emotions during the trade Journaling sharpens discipline and reduces repeat mistakes. 12. Use a Reliable Broker and Fast Internet Since scalping is execution-sensitive: Use a low-latency trading platform Ensure low spreads and commissions Maintain high-speed stable internet Disable unnecessary background apps during trading Execution quality directly affects profitability. 13. Stick to One or Two Assets Only Avoid switching between multiple stocks or pairs. By focusing on one instrument: You understand its behavior You predict its reaction to levels You avoid confusion You improve accuracy Scalpers trade familiarity, not variety. Conclusion Intraday scalping is a powerful trading style, but it requires discipline, precision, and emotional control. By choosing liquid instruments, using proper indicators, applying strict risk management, and practicing high-probability strategies, scalpers can achieve consistent intraday profits. Follow the technical rules, stay calm, avoid overtrading, and maintain a journal to track progress. Scalping rewards disciplined traders, not emotional ones.
NSE:TCSEducation
by TechnicalExpress
F&O (Futures and Options) Trading1. What Are Derivatives? Futures and Options are derivative instruments, meaning their value is derived from an underlying asset. This underlying can be: Stocks Indices (NIFTY, BANKNIFTY) Commodities Currencies The underlying’s price movement directly influences the F&O contract. 2. What Are Futures Contracts? A Futures contract is an agreement to buy or sell an asset at a predetermined price on a specific future date. Both parties are obligated to fulfill the contract. Key Features of Futures Obligation: Buyer must buy, seller must sell. Standardized: Lot size, expiry date, and price movement rules are fixed by the exchange. Margin Required: Traders don’t pay full contract value; they pay a margin (~10–20%), which offers leverage. Daily MTM: Profits or losses are settled daily through Mark-to-Market. Example If you buy NIFTY Futures at 22,000 and NIFTY rises to 22,200, you gain 200 points × lot size. If NIFTY falls, you face losses. Where Futures Are Used Speculation: To profit from price movements Hedging: To protect portfolios from adverse market moves Arbitrage: To profit from price differences between spot and futures markets Futures are powerful but risky due to high leverage. 3. What Are Options? An Option is a contract that gives the buyer the right, but not the obligation*, to buy or sell an underlying asset at a specific price before (or on) expiry. Two Types of Options Call Option (CE) – Right to buy Put Option (PE) – Right to sell Two Sides of Options Buyer (Holder): Pays premium, risk limited Seller (Writer): Receives premium, risk can be unlimited Strike Price The price at which you may buy or sell the underlying. Premium The price paid by option buyers. 4. How Option Buyers Make Money Call Buyer Profits when underlying price goes above strike price + premium. Put Buyer Profits when underlying price goes below strike price – premium. Buyers have limited loss (premium) and unlimited profit potential. 5. How Option Sellers Make Money Sellers receive the premium upfront. They profit when: Price does not move beyond breakeven Option expires worthless Time decay eats option value But sellers face unlimited loss risk, especially in naked selling. That’s why option selling must be done with proper hedging and risk management. 6. Expiry and Settlement F&O contracts expire on: Weekly expiry: Every Thursday (Index options) Monthly expiry: Last Thursday of every month After expiry, contracts settle based on closing prices of the underlying. 7. Margin and Leverage Futures require margin to control large positions. Example: NIFTY lot size: 50 NIFTY at 22,000 → Contract Value = 11,00,000 Margin required ≈ ₹1,40,000 This leverage amplifies gains and losses. Options buyers pay only the premium, no margin. Options sellers must pay heavy margins because of high risk. 8. Why Traders Use F&O? A. Hedging Investors use F&O to protect their portfolios. Example: If you own Reliance shares, you can buy a Put Option to hedge downside risk. B. Speculation Traders try to profit from price movements using leverage. Example: Buy BANKNIFTY 500-point movement with small capital by using options. C. Arbitrage Exploiting price differences between: Spot and Futures Option prices (mispricing) Arbitrage is low-risk and often executed by institutions. 9. Option Pricing Factors Option premiums are affected by: 1. Intrinsic Value Value if exercised today. 2. Time Value More time → higher premium. 3. Volatility Higher volatility → higher premium. 4. Interest Rates Small effect, but important for indices. 5. Demand/Supply Market sentiment impacts prices. The most important factors in India’s F&O market are volatility and time decay. 10. Greeks: The Heart of Options Trading 1. Delta Measures price sensitivity. Call Delta: 0 to 1 Put Delta: 0 to –1 2. Gamma Rate of change of Delta. 3. Theta Time decay. Option buyers hate Theta; sellers love it. 4. Vega Effect of volatility on premium. 5. Rho Effect of interest rates (least used). Understanding Greeks is essential for advanced F&O trading. 11. Popular F&O Strategies Directional Strategies Long Call Long Put Short Futures Long Futures Non-Directional Strategies Straddle Strangle Iron Condor Butterfly Hedging Strategies Protective Put Covered Call Collar Strategy Traders use these based on market conditions and risk appetite. 12. Risks in F&O Trading 1. Leverage Risk Small price movements can cause huge losses. 2. Unlimited Loss in Option Selling Selling naked options is extremely risky. 3. Margin Shortfall If losses exceed margin, broker issues margin calls. 4. Time Decay Options buyers lose value every day. 5. Volatility Crush After major events (budget, result days), volatility drops, premiums fall rapidly. 13. Benefits of F&O Trading 1. High Liquidity Especially in NIFTY and BANKNIFTY. 2. Hedging Power Protects portfolio from adverse moves. 3. Leverage Makes it possible to trade large positions with moderate capital. 4. Strategy Flexibility Works in bull, bear, and sideways markets. 5. Potential for High Returns When used correctly. 14. F&O in Indian Markets India is one of the world’s largest F&O markets due to: High retail participation Weekly indexes options Attractive margins High volatility in indices Index Options (NIFTY & BANKNIFTY) dominate over stock options. 15. How to Trade F&O Safely Use stop-loss always Avoid naked option selling Stay aware of global markets Track volatility (India VIX) Use hedged strategies Do not overleverage Maintain discipline Book profits regularly Conclusion F&O trading is a powerful tool for traders and investors, offering leverage, hedging benefits, and the ability to profit from different market conditions. However, F&O trading carries significant risk, especially due to leverage, time decay, and volatility. With proper risk management, strategy, and knowledge of options Greeks, traders can use F&O to enhance returns and protect their portfolios. For beginners, understanding the basics and practicing with small positions is crucial before jumping into advanced strategies or large trades.
NSE:BANKNIFTYEducation
by TechnicalExpress
Part 7 Trading Master Class With Experts Types of Option Strategies Option trading is not just about buying calls or puts; it involves strategic combinations to profit under various market conditions. Some popular strategies include: a) Bullish Strategies Bull Call Spread: Buying a lower strike call and selling a higher strike call. Bull Put Spread: Selling a higher strike put and buying a lower strike put. b) Bearish Strategies Bear Call Spread: Selling a lower strike call and buying a higher strike call. Bear Put Spread: Buying a higher strike put and selling a lower strike put. c) Neutral Strategies Iron Condor: Selling one call and one put at close strikes while buying further out-of-the-money options. Straddle: Buying both a call and put at the same strike to profit from big moves in either direction. Strangle: Buying a call and a put at different strikes to benefit from volatility. These strategies allow traders to earn consistent returns by managing risk rather than relying purely on market direction.
FXOPEN:XAUUSDEducation
by SkyTradingZone
Part 4 Learn Institutional Trading Participants in the Options Market There are four types of participants in the options market: Buyers of Call Options – Expect the price to go up. Sellers of Call Options – Expect the price to stay the same or fall. Buyers of Put Options – Expect the price to fall. Sellers of Put Options – Expect the price to stay the same or rise. Buyers take limited risk (the premium) with unlimited profit potential, while sellers take limited profit (the premium received) but unlimited risk.
TVC:GOLDEducation
by SkyTradingZone
PCR-Based Trading StrategiesFactors Affecting Option Prices Option prices (or premiums) are influenced by several variables, collectively known as the Option Greeks: Delta: Measures how much the option price changes for a ₹1 move in the underlying asset. Gamma: Measures how much Delta changes with each ₹1 move in the underlying. Theta: Measures time decay — how much the option loses value as expiry approaches. Vega: Measures sensitivity to volatility — higher volatility increases option prices. Rho: Measures sensitivity to interest rates (less relevant for short-term trades). Among these, Theta (time decay) and Vega (volatility) play a major role in intraday and short-term trading.
NSE:BANKNIFTYEducation
by SkyTradingZone
How Professional Traders Trade Smartly Introduction Professional traders operate in highly competitive and dynamic markets, where success requires a combination of technical expertise, psychological discipline, risk management, and continuous learning. Unlike casual or retail traders, pros approach trading systematically, treating it as a business rather than a hobby. Their strategies focus not just on making profits but on preserving capital, optimizing risk-adjusted returns, and adapting to ever-changing market conditions. This essay explores how professional traders trade smartly and grow their trading business. 1. Developing a Strong Trading Mindset The foundation of professional trading lies in psychology. Market behavior is often unpredictable, driven by collective human emotions such as fear, greed, and uncertainty. Pro traders cultivate a mindset that allows them to stay rational and disciplined even in volatile conditions. Emotional Discipline: Professionals avoid impulsive decisions. They follow their trading plan strictly, resisting the temptation to chase losses or over-leverage positions. Patience and Consistency: They understand that profitable trades come from patience, waiting for high-probability setups rather than forcing trades. Acceptance of Losses: Losses are inevitable. Pros treat them as a cost of doing business and focus on minimizing them rather than trying to eliminate them entirely. 2. Comprehensive Market Knowledge Professional traders have deep knowledge of the markets they trade in, whether equities, commodities, forex, or crypto. Market Structure Awareness: They understand order flows, liquidity zones, support and resistance levels, and macroeconomic factors influencing prices. Asset-Specific Knowledge: A trader specializing in tech stocks, for instance, studies earnings reports, industry trends, and regulatory impacts. Global Economic Awareness: Professionals track global news, monetary policies, geopolitical events, and market correlations that can affect their trades. This deep understanding enables them to make informed decisions and anticipate market movements rather than reacting blindly. 3. Strategic and Technical Approach Professional traders rely on structured strategies to increase their probability of success. Technical Analysis: They use charts, patterns, indicators, and volume analysis to identify entry and exit points. Tools like moving averages, RSI, MACD, and Fibonacci retracements help in precise decision-making. Fundamental Analysis: Long-term traders evaluate financial statements, economic indicators, and company performance to assess the intrinsic value of assets. Algorithmic and Quantitative Strategies: Some professionals leverage algorithmic trading and quantitative models to automate trades, reduce emotional bias, and exploit market inefficiencies. Diversification of Strategies: Pros rarely depend on one strategy. They maintain multiple strategies suitable for trending, range-bound, or volatile markets. 4. Risk Management Mastery Risk management separates successful traders from amateurs. Professionals prioritize capital preservation over chasing high returns. Position Sizing: They calculate the exact size of each trade to ensure no single loss can drastically affect their portfolio. Stop-Loss and Take-Profit Orders: Smart traders define exit points before entering a trade, ensuring losses are limited and profits are systematically captured. Risk-Reward Ratios: They target trades with favorable risk-reward ratios (e.g., risking $1 to gain $3), improving long-term profitability. Hedging: Advanced traders use options, futures, or other instruments to hedge positions against market volatility. Effective risk management allows them to survive losing streaks and remain consistent over time. 5. Technology and Tools Utilization Professional traders leverage modern technology to enhance decision-making and execution efficiency. Trading Platforms: High-speed platforms provide real-time data, charting tools, and fast execution capabilities. Market Scanners: Tools to identify trade setups based on pre-defined criteria save time and increase efficiency. News Feeds and Economic Calendars: Real-time news helps traders react to events before the market fully adjusts. Backtesting Software: Professionals test strategies on historical data to evaluate performance before committing real money. 6. Continuous Learning and Adaptation Financial markets are dynamic, requiring traders to adapt constantly. Learning from Past Trades: They maintain trading journals, reviewing winning and losing trades to identify patterns, mistakes, and improvements. Education: Pro traders invest in courses, mentorship, and seminars to stay updated with new strategies and market trends. Adapting Strategies: When market conditions change (e.g., low volatility, high inflation, or geopolitical uncertainty), professional traders adjust their strategies to remain profitable. 7. Networking and Market Intelligence Trading is not only about charts; it’s also about information. Professional Networks: Pros connect with other traders, analysts, and mentors to exchange ideas and insights. Market Sentiment Analysis: Understanding crowd psychology and institutional behavior allows professionals to anticipate major market moves. Information Advantage: Being aware of earnings reports, policy changes, or macroeconomic data before the market reacts can provide an edge. 8. Building Capital and Growing Professionally Smart trading is also about business growth, not just trading skill. Compounding Gains: Profits are reinvested systematically, using compounding to grow capital over time. Scaling Trading Strategies: Successful strategies are scaled gradually to handle larger capital without increasing risk disproportionately. Diversifying Income Streams: Professionals may expand into multiple markets, asset classes, or even start advisory services. Brand and Reputation: Long-term success allows pros to manage external funds, run hedge funds, or attract institutional clients. 9. Avoiding Common Pitfalls Professional traders are aware of mistakes that can destroy accounts. Overtrading: Trading too frequently or with excessive leverage reduces profitability. Emotional Biases: Greed, fear, overconfidence, and revenge trading are avoided through discipline and pre-defined rules. Following the Crowd Blindly: Pros make independent decisions based on data, not hype or rumors. Ignoring Risk Management: Even a few careless trades without proper stops can offset months of gains. 10. Case Studies of Professional Trading Examining successful traders provides insight into smart trading practices. Paul Tudor Jones: Focused on macroeconomic trends and disciplined risk management. George Soros: Known for his speculative strategies with clear exit plans and risk control. Ed Seykota: Advocated trend-following and strict discipline in trading systems. Modern Algo Traders: Use high-frequency algorithms to capture small inefficiencies across multiple markets, showing how technology amplifies traditional strategies. These examples highlight that consistent success comes from discipline, intelligence, and adaptation rather than luck. Conclusion Professional traders succeed by combining knowledge, strategy, psychology, risk management, and technology. They treat trading as a disciplined business, not a gamble, focusing on capital preservation, high-probability setups, and long-term growth. Through continuous learning, adaptation, and networking, they stay ahead in competitive markets. Smart trading is thus a blend of science and art—where skill, patience, and discipline turn opportunities into sustainable profits. By leveraging these practices, traders can steadily grow both their capital and professional stature, building a resilient and profitable trading career.
CAPITALCOM:GOLDEducation
by TechnicalExpress
Nifty Analysis: May2023Let’s quickly start this analysis from June 22 lows. Weekly Chart There is a clear A-B-C type corrective pattern which tested into previous highs of Oct 2021. I was expecting some support build up near 18000 levels (for the trend to resume on the upside) in Dec 2022 but that did not happen, and the market just drifted lower and lower to previous support area around B. Currently it is again bouncing hard towards the prior swing high A. From this structure it seems market is in a mood to trap more buyers on the upside before losing strength for new lows below B (continuing a potential H&S). But is that really true? Let’s get down to the daily time frame (left chart) and find out. Daily Chart We can see a corrective LH-LL structure which is still intact as per my understanding. I won’t consider Feb 2023 lows as a lower low (because of poor thrust below Jan 2023 lows). This is why the Feb swing high (18135 or so) would remain a LH in the trend channel. Also visible in the chart is a sharp rally from Mar 2023 lows, an Inverted Head & Shoulder pattern and a break of its neckline above 17800 zone, good omen for the buyers. But remember that lower high is still intact. Looking at the price behavior of this rally, it is totally agreeable that there is a potential for shift in structure (for uptrend) with a close above 18135 this week. Now the question is that whether the higher timeframe weakness with an ABC corrective and a potential Head & Shoulder pattern would prevail over the strength on the lower timeframe chart? The answer is that its difficult to predict with 100% accuracy. But one thing that can be done confidently is to manage your trades properly. For short-term trading I would say that booking some profit (if bought near the lows) is definitely an option. Reaction from previous resistance areas is a time-tested behavior, so one can always trail and lock profits in case of doubt. For this trend to continue on the upside, any test of 17800 has to hold. A failure of this level may put this trend in jeopardy. Similar lines can be seen in Oct2021 to June2022 correction. So the conclusion is to book a little if you want and lock the rest with trail below 17800. Any new buying at this point would remain a question mark. Thanks for reading. Do hit the boost button for more ideas in future. Disclaimer: All the views above are personal only and not an investment or trading advice. So you will have to apply your due diligence.
NSE:NIFTY
by Bravetotrade
20