Bulls, Bears & The Lion

[findvikas]

vikas sir u ignored my call of LML pls tell me why evinix in range from 3.65-4.20 and why birla cotton not breaking 1.15 Rs ??????????????????Thnx in advance

........

 

[saivenkat]

@ Vikas ji


"Always, believe in what you see on the charts and not try to see what you believe in the heart - Vikas"

Firstly, its from your signature that i have developed an attitude to focus only on charts, and keep the eyes and ears shut from external factors influencing my mind. Thanks.

From my reading of charts, i feel that there is a chance for fall.. But then still some thing in me wants to check my opinion about the present situation of the market that i have. At present i am holding short positions in nifty, at 5130. Can i average my shorts at higher prices, when 5185, or 5207 resistance, if it is broken. or is it safe to exit.

Regards
Saivenkat.

 

[scplindia]

today there was some short covering rally towards the end. hence need to be careful, I also feel from my study that there is more downside.

 

[findvikas]

Looking at various charts USD, US 10Y Bond, Gold, Silver, Dow, S&P... I am predicting & expecting numbers to leave negative sentiment atleast to start with. Lets see how numbers are...

after effects...
USD Down
Bond Rally
Gold rebound
Silver rebound
Dow , S&P Down


Gold & Silver are the biggest stars

 

[saivenkat]

today there was some short covering rally towards the end. hence need to be careful, I also feel from my study that there is more downside.

Dear Scplindia,

How can one find from the charts or is there any kind of data from which we can interpret that this kind of rally is SHORT COVERING RALLY OR else a real buying pressure coming in to the market? This question may be too silly and very ordinary.. but then i have no other go, than to place in a forum where stalwarts are.

Regards
Saivenkat.

 

[trader.trends]

Dear Scplindia,

How can one find from the charts or is there any kind of data from which we can interpret that this kind of rally is SHORT COVERING RALLY OR else a real buying pressure coming in to the market? This question may be too silly and very ordinary.. but then i have no other go, than to place in a forum where stalwarts are.

Regards
Saivenkat.

Saivenkat
This will give your the answer. When open interest drops it is an indication of short covering. Although I would say the % change is not very significant. The data is available on NSE site.
Change in Open Interest -906550
% Change -3.46

 

[findvikas]

From my reading of charts, i feel that there is a chance for fall.. But then still some thing in me wants to check my opinion about the present situation of the market that i have. At present i am holding short positions in nifty, at 5130. Can i average my shorts at higher prices, when 5185, or 5207 resistance, if it is broken. or is it safe to exit.

Regards
Saivenkat.

I would not advise to average your losers but only winners.. this is what I have learned and started to do... add positions to winners and cut positions from losers.. play safe above 5150 level and create some hedge may be..


I am not really someone who hedge positions but would like to understand of adding a short strangle along with your nifty short position at 5130

may be someone guide me as well...

If you sell 5100PE & 5200CE then you can collect near 100 points per today's close price

give you a safe range of 5000 - 5300... if break on down side then your Nifty short will be in good gains and if it goes above 5200 then you can cover your Nifty Short and continue holding strangle

Seniors, Does that sound like a good plan? or even better question.. what could be loop holes or caveats in it ?

 

[findvikas]

Short Covering or Profit Booking rally you never know but these kind of trades are normal before any important news event... market usually goes in opposite direction to give it enough force to go in the actual intended direction...

 

[AlokTewari]

after effects...
USD Down
Bond Rally
Gold rebound
Silver rebound
Dow , S&P Down


Gold & Silver are the biggest stars

Hi

Dow is probably the best in deceiving. My guess is even today Dow may end up in green. maybe a big one who knows. We will know tomorrow morning but Nifty's last 20 minutes move was not to trap gullible traders but big operators getting the wind of what is in store tomorrow & building up their position. Let's see.

Cheers !!!

Alok Tewari

 

[saivenkat]

I would not advise to average your losers but only winners.. this is what I have learned and started to do... add positions to winners and cut positions from losers.. play safe above 5150 level and create some hedge may be..


I am not really someone who hedge positions but would like to understand of adding a short strangle along with your nifty short position at 5130

may be someone guide me as well...

If you sell 5100PE & 5200CE then you can collect near 100 points per today's close price

give you a safe range of 5000 - 5300... if break on down side then your Nifty short will be in good gains and if it goes above 5200 then you can cover your Nifty Short and continue holding strangle

Seniors, Does that sound like a good plan? or even better question.. what could be loop holes or caveats in it ?

Thanks Vikas ji for your kind suggestion.

Either i am not good in handling strangle positions in options.

1) Is it not enough to Sell 5200 put, to hedge my position in shorts at 5130?

2) If this is not so, i feel that coming out with stop loss is the best.

Can you suggest Vikas ji.
Thanks
Saivenkat.