S & P revised rating and NIFTY bounced back from 7840. It was precise number for EW count wave 4. It should not have gone below 7840 for valid EW count 4. It is one of the cardinal rule in EW principle that wave 4 should never enter in to territory of wave 1 in trending mode.
FII sold huge and DII bought in huge quantities. This could be risky for bulls. But still Bulls can maintain their positions with SL 7835 in cash.
In spite of big move on Friday afternoon, look at option table. That rise was used by Bulls to liquidate long positions in beginning of the series itself. This is bit unusual. This indicates all shorts which were squeezed last week could find early opportunity to exit due to S & P rating revision.
One can see lot of additions in CALLs and liquidation of PUTs.
RBI policy next week, could be non-event, RBI will not do any major change in interest rate.
So in spite of EW count, I am not comfortable in buying unless NIFTY crosses 8050 in cash. Due to global cues one could see positive opening.
NAMO speech (any speech, be it in front of national audience, international audience or even to children.) generally would bring excitement in the market and this could take rally forward by another 70-80 points on Monday.
One could exit long positions if any around NIFTY 8030-8035.
Enter in longs only if hourly close above 8050. If that happens keep accumulating 8200 CALL buy contracts.
LT:
LT is in general down trend.
Option table shows range between 1400-1600 for this series.
Safe trade could be straddle in LT.
Sell 1650 CALL around 10 and sell 1350 PUT around 10-11. This will gain around 5000/- in your trading account with an investment of Rs. 80000/- as margin money.
More safe could be to sell just 1650 CALL around 10.
Disclaimer: This blog does not take any responsibility of your profit/loss.
FII sold huge and DII bought in huge quantities. This could be risky for bulls. But still Bulls can maintain their positions with SL 7835 in cash.
In spite of big move on Friday afternoon, look at option table. That rise was used by Bulls to liquidate long positions in beginning of the series itself. This is bit unusual. This indicates all shorts which were squeezed last week could find early opportunity to exit due to S & P rating revision.
One can see lot of additions in CALLs and liquidation of PUTs.
RBI policy next week, could be non-event, RBI will not do any major change in interest rate.
So in spite of EW count, I am not comfortable in buying unless NIFTY crosses 8050 in cash. Due to global cues one could see positive opening.
NAMO speech (any speech, be it in front of national audience, international audience or even to children.) generally would bring excitement in the market and this could take rally forward by another 70-80 points on Monday.
One could exit long positions if any around NIFTY 8030-8035.
Enter in longs only if hourly close above 8050. If that happens keep accumulating 8200 CALL buy contracts.
LT:
LT is in general down trend.
Option table shows range between 1400-1600 for this series.
Safe trade could be straddle in LT.
Sell 1650 CALL around 10 and sell 1350 PUT around 10-11. This will gain around 5000/- in your trading account with an investment of Rs. 80000/- as margin money.
More safe could be to sell just 1650 CALL around 10.
Disclaimer: This blog does not take any responsibility of your profit/loss.
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