NIFTY is in uptrend.
But uptrend on weak volumes. Today, FIIs were net sellers again in cash segment. NIFTY heavyweights are going up. Bank Nifty is not so much supportive so far.
Last 15 days FIIs are booking profits/exiting and DIIs are buying equally huge quantities. This seems to me bit risky for present NIFTY uptrend based on the history. Generally NIFTY followed FIIs or vice versa.
What is the best trade under these circumstances?
Those who want to risk Rs. 18000/-, the best strategy would be to buy 16600 PUT of Bank NIFTY around 300 and buy 16600 CALL of Bank Nifty around 300/-
Maximum loss will be Rs 18000/- but would have unlimited profit potential based on volatile market ahead.
Bank Nifty could go to 14600 in short time after FED rate hike, unpromising Parliamentary session and has potential to fetch hefty profit.
Another cost effective trading option is in NIFTY. 7400 PUT is being traded around 16. Buy it. Even if one invests Rs. 4500-5000, there is possibility of huge profit.
In short, chose one of the following trades:
Straddle in BN: Buy 16600 PUT and CALL of Bank NIFTY both around 300/-
Buy 7400 NIFTY PUTs (4 los) around 16-17.
Disclaimer: This blog does not take responsibility of your profit/loss.
But uptrend on weak volumes. Today, FIIs were net sellers again in cash segment. NIFTY heavyweights are going up. Bank Nifty is not so much supportive so far.
Last 15 days FIIs are booking profits/exiting and DIIs are buying equally huge quantities. This seems to me bit risky for present NIFTY uptrend based on the history. Generally NIFTY followed FIIs or vice versa.
What is the best trade under these circumstances?
Those who want to risk Rs. 18000/-, the best strategy would be to buy 16600 PUT of Bank NIFTY around 300 and buy 16600 CALL of Bank Nifty around 300/-
Maximum loss will be Rs 18000/- but would have unlimited profit potential based on volatile market ahead.
Bank Nifty could go to 14600 in short time after FED rate hike, unpromising Parliamentary session and has potential to fetch hefty profit.
Another cost effective trading option is in NIFTY. 7400 PUT is being traded around 16. Buy it. Even if one invests Rs. 4500-5000, there is possibility of huge profit.
In short, chose one of the following trades:
Straddle in BN: Buy 16600 PUT and CALL of Bank NIFTY both around 300/-
Buy 7400 NIFTY PUTs (4 los) around 16-17.
Disclaimer: This blog does not take responsibility of your profit/loss.
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