NIFTY took support at 5800-5820 level and bounced back to day open. It gave hammer candle. This is first bullish sign after three/four days. Lower price was rejected and NIFTY is set for an up-move.
There is lot of liquidity which is supporting up-move. Though major indices in world are in red, Singapore NIFTY recovered and very soon will be in green. This hints today NIFTY may not see huge fall which one would expect based on global cues, profit bookings on expiry date, many gloomy factors in our economy etc.
Book profit in all bear positions if NIFTY goes in support zone 5820-5800 today again. Expect lot of volatility being an expiry day after 2 PM. There could be panic selling/buying and if NIFTY is close to 5800 that time buy 5800 CALL , which should be cheap around 8-10 and buy 5800 PUT, it will be also around 8-12.
In the same manner, if NIFTY is close to 5900 at around 2 PM buy 5900 CALL , which should be cheap around 8-10 and buy 5900 PUT, it will be also around 8-12.
But if in case NIFTY is away from 5800, 5900 + 10 then don't take this trade.
Only if there is substantial profit in your trading account, then invest in OTM CALLs and PUTs today in stocks with very high IV.
Example:
Buy AXISBANK 1000 PUT between 2-3. Total investment Rs. 750/-
Buy Reliance 840 PUTs between 3-4/-
Buy TCS 2000 CALL between 3-4/-
Buy BHEL 150 CALL between 0.30-0.40
Total investment in these contracts will be between 3 to 4 thousands but even if one trade clicks it could add huge profit in your trading account. But be prepared to see your profit of this month eroding by 4000/-
Disclaimer: This blog does not take any responsibility of your profit/loss
There is lot of liquidity which is supporting up-move. Though major indices in world are in red, Singapore NIFTY recovered and very soon will be in green. This hints today NIFTY may not see huge fall which one would expect based on global cues, profit bookings on expiry date, many gloomy factors in our economy etc.
Book profit in all bear positions if NIFTY goes in support zone 5820-5800 today again. Expect lot of volatility being an expiry day after 2 PM. There could be panic selling/buying and if NIFTY is close to 5800 that time buy 5800 CALL , which should be cheap around 8-10 and buy 5800 PUT, it will be also around 8-12.
In the same manner, if NIFTY is close to 5900 at around 2 PM buy 5900 CALL , which should be cheap around 8-10 and buy 5900 PUT, it will be also around 8-12.
But if in case NIFTY is away from 5800, 5900 + 10 then don't take this trade.
Only if there is substantial profit in your trading account, then invest in OTM CALLs and PUTs today in stocks with very high IV.
Example:
Buy AXISBANK 1000 PUT between 2-3. Total investment Rs. 750/-
Buy Reliance 840 PUTs between 3-4/-
Buy TCS 2000 CALL between 3-4/-
Buy BHEL 150 CALL between 0.30-0.40
Total investment in these contracts will be between 3 to 4 thousands but even if one trade clicks it could add huge profit in your trading account. But be prepared to see your profit of this month eroding by 4000/-
Disclaimer: This blog does not take any responsibility of your profit/loss
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