Long or Short Opinion

[nimish_rulz]

Ruanakji do you when are the IIP numbers coming out. I think we will have very bad quarters on a few tech companies and also the IIP numbers according to me have peaked out last month. I think we will see a fall in numbers and that would trigger the decline. I was reading a chart comparison of IIP numbers from 2005-2010 and the graph showed last month was the best ever and I doubt we will repeat it that according to me was a black swan event that growth in IIP was so high month on month even though previous month was around 13%.
Year or Year I am not so sure that can still be great as we were in recovery mode but soon that will change YoY will start looking bad too.

As expected IIP numbers peaked out last time when they came out. It wasn't looking real as for past 5 year IIP number had never reached that level even though GDP was @ 9.5% in 2006-2007. Good momentum in the market if any one still fancies a long or want to hold on for a next few days for riding the momentum of foreign markets metal sector can be the one where some short covering can come and one can take longs with tight stops to get good returns.

 

[rajputz]

Hi Guyz,

I was looking at chart of herohonda today. I am finding it worth to short near 1975 and 1990. What are your views. Will be shorting a future of august month. The reason for shorting are: -

Momentum down on CCI. Going negative. Rejecting to go up and faced resistance near the -100 line. Also a few days back there was ghost on CCI. after which price was taking support, but today the support was broken.

Tha major support was at 1991 at 34 EMA, which is broken in this case. Pivot low was also at 1932, which is broken.

Movement of stochastic and RSI is also showing a strength in downward move.

As per Market Facilitation Index of considering the volume movement following is the observation: -

8 july -Increase in Volume Decrese in MFI. Squating Move. A change in direction can come.
9 July - Further Increase in volume and decrese in MFI. Another Squatting movement. Again market waiting for directional move above or below it.
12 July - Increase in volume and increase in MFI. Go with the direction of this candle.
Which in simple term means that 8 and 9 th day were the distribution day for high volumes (doji candles), and today wasa directional day. As per my understanding.
Volumes has also increased on the fall.

Leave your comments.

P.S. - I presently dont have any position in this stock, but will be having tomorrow.

 

[crown]

If I have understood correctly, you were doing intraday trade, NIFTY future would have been better choice. In case you want to trade option, there are some cases when you can use option as well. For example, in morning NF fell 40 points today and 5500 PUT increased by 30 points. So one could have used 5500 PUT in morning today for trading.

After your entry, NF went up 10+ points, but 5400 call would not have increased much. Had you traded with NF, you could be gaining some money. option would give you loss.

Also in the middle of a month, if you hold option, can give loss even if you get market right as time value will decrease rapidly.

Hope this helps.

thanks simple trader bhai
It really helped a lot.
I was also feeling that why nifty call not increasing as much as nifty future.
Thanks a ton bhai for your kind guidance.

 

[crown]

What i feel Mr. ST is trying to say that, you should have rather bought Nifty Futures rather then buying call option as with expiry approaching the time value of call option will reduce every day.

thanks piyush bhai
thanks a lot for helping me

 

[aditya14]

Jai ho Nifty 52 week high and all the talk of recession,4800 huge crash and all are not to be heard anymore.

Stay invested in stocks guys.....

 

[arti]

Raunak, will u plz give explanation on it?

Rajputz Dear,

Just a question for you.

Why would the market respect a 15 Min Chart frame and not the 30 Min Chart frame? That is, Markets in large operate on every time frame. What seems a sell on 15 Min might look a buy on Hourly. Then why would market honor one time frame and neglect the other? Have you thought about this? At all times, all time frames are acting. Think about this. There is a definite answer. When you get it, your profitability will increase at least by two times. If you can't find it, I'll give the answer then. But, think about it.

Tc

 

[rajputz]

yaar no body wanting to participate...no views on herohonda also...

 

[blackberry]

Respected Sir's.

Just one questions.What happened if I dint sell/exercise my option till last day of expiry.My whole premium is gone or amount credited by exchange whatever may be the price of option on last day.What will be the brokerage for that.

 

[rajeabc]

Respected Sir's.

Just one questions.What happened if I dint sell/exercise my option till last day of expiry.My whole premium is gone or amount credited by exchange whatever may be the price of option on last day.What will be the brokerage for that.

you will get the value of premium at expiry . if your options worth R Rs at exp then you would get (R*lot size - brokerage ) if it is + then you will get money else you will have to pay.

 

[nimish_rulz]

yaar no body wanting to participate...no views on herohonda also...

Sorry bro I am busy with my packing and stuff as coming back to India soon will start chipping in Once I am back home.