NIFTY is at very uncertain stage today.
We are in all time bull run where every small dip is being bought.
Everything will depend upon next trigger at 11 AM on Tuesday, RBI policy and associated commentary. If Governor decides to curb inflation and to take tough decisions NIFTY will see 7350 level before end of the week, on the contrary slight positive statements, no changes in key rates will see NIFTY touching near 7850.
Usual CALL sell positions will be taken post policy announcements.
NIFTY chart:
See both options possible but looking at open interest more possibility of some more downside after policy announcement.
Hold 8100 and 8000 CALL sell contracts.
BANKNIFTY
Again all eyes on Tuesday.
BN might give some bounce back today.
There one important gap between 14307 and 14747 generated around election result day on May 16. It could not be filled yet and last time BANKNIFTY bounced back from that region ie on July 14.
If this gap is filled on Tuesday BN could slip to 13900.
Keeping this view in mind, buy 14400 PUT between 80-100. I agree this is OTM PUT and against our standard strategy during start of the month, but this small Rs. 2000-2500 investment could pay-off if Tuesday's Governor's commentary is not market friendly.
FIIs are selling.
Generally, historically August is not good month for market.
Geopolitical concerns are deepening.
Inflation data for this month may not be very encouraging.
Hence, I think there could be 5-10% correction before NIFTY/BN takes off again to continue bull run.
LT
Buy 1300 PUT between 4-5
LT could go near 1340-1350 in this week and one could gain handsome profit in very small investment of Rs. 1000/-
TATAMOTORS
Double top formation.
It could see 390-400 levels if this pattern works.
Bear spread strategy
Buy 410 PUT around 5-5.50 and sell 400 PUT around 3.25-3.75.
Maximum loss could be around 2000/- maximum profit potential Rs. 8000/-
OR
Sell 520 CALL around Rs. 1-1.20
Disclaimer: This blog does not take any responsibility of your profit/loss
We are in all time bull run where every small dip is being bought.
Everything will depend upon next trigger at 11 AM on Tuesday, RBI policy and associated commentary. If Governor decides to curb inflation and to take tough decisions NIFTY will see 7350 level before end of the week, on the contrary slight positive statements, no changes in key rates will see NIFTY touching near 7850.
Usual CALL sell positions will be taken post policy announcements.
NIFTY chart:
See both options possible but looking at open interest more possibility of some more downside after policy announcement.
Hold 8100 and 8000 CALL sell contracts.
BANKNIFTY
Again all eyes on Tuesday.
BN might give some bounce back today.
There one important gap between 14307 and 14747 generated around election result day on May 16. It could not be filled yet and last time BANKNIFTY bounced back from that region ie on July 14.
If this gap is filled on Tuesday BN could slip to 13900.
Keeping this view in mind, buy 14400 PUT between 80-100. I agree this is OTM PUT and against our standard strategy during start of the month, but this small Rs. 2000-2500 investment could pay-off if Tuesday's Governor's commentary is not market friendly.
FIIs are selling.
Generally, historically August is not good month for market.
Geopolitical concerns are deepening.
Inflation data for this month may not be very encouraging.
Hence, I think there could be 5-10% correction before NIFTY/BN takes off again to continue bull run.
LT
Buy 1300 PUT between 4-5
LT could go near 1340-1350 in this week and one could gain handsome profit in very small investment of Rs. 1000/-
TATAMOTORS
Double top formation.
It could see 390-400 levels if this pattern works.
Buy 410 PUT around 5-5.50 and sell 400 PUT around 3.25-3.75.
Maximum loss could be around 2000/- maximum profit potential Rs. 8000/-
OR
Sell 520 CALL around Rs. 1-1.20
Disclaimer: This blog does not take any responsibility of your profit/loss
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