From OI data it is clear that NIFTY could stay in range, The range is bit broad ie 7500-8300.
Maybe 25 bps rate cut is already factored in, if it is more NIFTY will go near 8300, if not 7500 is on cards.
But one can get some good trades with proper money management.
Suppose one is handling trading account worth 5 lacs INR.
Then he/she should risk only one percent ie around INR 5000/- per trade and should not trade in more than 5 trades at one time.
If everything goes wrong (this is highly unlikely scenario) , total loss could be Rs. 25000/- in the month, and then in which case one should not trade for rest of the month! Discipline!!
So first one should get money from the market. Assuming NIFTY will be range bound, one can sell 8200 PUTs and 7600 CALLs. This will help in credit balance about Rs. 70000/-.
Few more good trades could be:
Sell DishTV 130 CALL around 1.80/-
Buy 2700 TCS CALL around 38/-
Buy 880 PUT of Sunpharma around 22
Sell 840 PUT of Sunpharma around 10
In short, now you have total five strategies/trade combinations:
I will try and follow all trades everyday, but one must not hesitate to book profit as appropriate.
Disclaimer: This blog does not take any responsibility of your profit/loss
Maybe 25 bps rate cut is already factored in, if it is more NIFTY will go near 8300, if not 7500 is on cards.
But one can get some good trades with proper money management.
Suppose one is handling trading account worth 5 lacs INR.
Then he/she should risk only one percent ie around INR 5000/- per trade and should not trade in more than 5 trades at one time.
If everything goes wrong (this is highly unlikely scenario) , total loss could be Rs. 25000/- in the month, and then in which case one should not trade for rest of the month! Discipline!!
So first one should get money from the market. Assuming NIFTY will be range bound, one can sell 8200 PUTs and 7600 CALLs. This will help in credit balance about Rs. 70000/-.
Few more good trades could be:
Sell DishTV 130 CALL around 1.80/-
Buy 2700 TCS CALL around 38/-
Buy 880 PUT of Sunpharma around 22
Sell 840 PUT of Sunpharma around 10
In short, now you have total five strategies/trade combinations:
- Sell 8200 PUT (4 lots) and 7600 CALLs (4 lots) of NIFTY of October expiration. Monitor this on EOD basis and exit from loss making trade ( and stay foot in other trade) if and only if combined loss is more than Rs. 5000/- .
- Sell DishTV 130 CALL around 1.80 of October expiration. If loss is more than Rs. 5000/- then just exit from trade.
- Buy 2700 strike price TCS CALL around 38/- Loss could never be more than 5000/- so stay in the trade either till expiry or till quarterly results.
- Buy 880 PUT of Sunpharma around 22 and Sell 840 PUT of Sunpharma around 10, loss could be maximum 3000/- and profit potential Rs. 7000/- so carry this trade till expiration.
- Southbank: Buy Southbank 25 CALL around 0.90/- SL 0.40. This bank is showing some urgency, trading above key averages with good volumes in recent past and who knows could able to make mega money for us.
I will try and follow all trades everyday, but one must not hesitate to book profit as appropriate.
Disclaimer: This blog does not take any responsibility of your profit/loss
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