NIFTY Futures Mechanical Trading

[nadodav]

NIFTY FUTURE For January 28,

Current position : LONG (at 5244 on 23/01/2007)

Nifty Fut Closed at : 5389.90

Profit/(Loss) in current trade : 145.90 (as per last closing price)
Net Profit / (Loss) since thread started : +1478.90 (1333.00+145.90)

Support : 5151
Resistance : 5439

Hold LONG positions with SL 5151 If trades below 5151, exit LONG & go SHORT with SL 5439.

I will go SHORT if market trades below 5151 with SL 5439.

All new members visiting first time are requested to read all messages start from first one before going ahead.

No fresh position should be taken based on my support and resistances as range is still wide & volatality may remain high.

Nifty Fut.xls updated in my 1st message

Happy Trading.

Vinod

 

[nadodav]

hi vinod...

can we say that 4500 nifty lvls is bottom?

it looks that 4500 is bottom but still not sure as market will largly depends on global cues and FII selling. But I think volatality will remain very high in near future.

Vinod

 

[MAHENDRA B JAIN]

Dear Vinod,

During volatile market conditions. say 400-500 points volatility, suppose as per your support n resistance (diff being 450 points) if in intraday we come to know that diff has come down, we can take positions with low risk. What do you think ?

With Regards,
Mahendra

 

[nadodav]

Dear Vinod,

During volatile market conditions. say 400-500 points volatility, suppose as per your support n resistance (diff being 450 points) if in intraday we come to know that diff has come down, we can take positions with low risk. What do you think ?

With Regards,
Mahendra

Dear Mahendra,

Yes. you can take positions with low risk. If market trades just above support, you can go LONG by keeping 5-10 points below support as your stoploss. or can go SHORT just below resistance by keeping resistance + 10 points as your stoploss. but do not take reverse position once stoploss triggered. just exit and wait for another trade till market to trade near support or resistances. may be you can have some small loss making trades but any trade that will be in your favour will give good gain.

Vinod

 

[MAHENDRA B JAIN]

Dear Mahendra,

Yes. you can take positions with low risk. If market trades just above support, you can go LONG by keeping 5-10 points below support as your stoploss. or can go SHORT just below resistance by keeping resistance + 10 points as your stoploss. but do not take reverse position once stoploss triggered. just exit and wait for another trade till market to trade near support or resistances. may be you can have some small loss making trades but any trade that will be in your favour will give good gain.

Vinod

Dear Vinod,

Thanks for the suggestion but i didnt mean that way. What i mean is this way :

1. For 23.01.08, support n resistance were 5244 n 4713 resp.

2. On 23.01.08, nifty broke 5244 n we were supposed to go long but bcos of huge diff of 531 ( 5244 - 4713 ) we wont go long.

3. Now, next day support becomes 4951 n on 23.01.08 when nifty broke 5244 n same day after break out it came to a low of 4958 n if we come to know next day's support 4951, we can take entry near 5000 - 5050 level, wont it become very low risk entry in volatile market.

With Regards,
Mahendra

 

[nadodav]

Dear Vinod,

Thanks for the suggestion but i didnt mean that way. What i mean is this way :

1. For 23.01.08, support n resistance were 5244 n 4713 resp.

2. On 23.01.08, nifty broke 5244 n we were supposed to go long but bcos of huge diff of 531 ( 5244 - 4713 ) we wont go long.

3. Now, next day support becomes 4951 n on 23.01.08 when nifty broke 5244 n same day after break out it came to a low of 4958 n if we come to know next day's support 4951, we can take entry near 5000 - 5050 level, wont it become very low risk entry in volatile market.

With Regards,
Mahendra

sure. you can take entry near 5000-5050 level in that case. but just keep in mind that, if market keeps moving up, support and resistances both will also move up and if market closes somewhere around near support, than next days support will be lower than today's.

Vinod

 

[saurik]

Hi....vinod

shall i short nifty now?

 

[nadodav]

Hi....vinod

shall i short nifty now?

Till SL range does not fall around 100-150, i do not advise anybody to takte any position eitherside. better to wait and watch or may consider to utilise money in delivery purchases. There is no need to hurry.

Vinod

 

[sachin_jain3]

Hello Vinod,

You said - "No fresh position should be taken based on my support and resistances as range is still wide & volatality may remain high." - Does that mean we shouldnt have gone short at 5151 as advised in todays recomendation.

also you say - "I will go SHORT if market trades below 5151 with SL 5439." - Why would you do that if you are advising others not to go short? This is contradictory to the other statement above. Are you going short just to test your trading algorithm?

Sachin

 

[saurik]

HI,VINOD

i have fulfaith in ur theory.......but in market dynamics when i ask u abt to short nifty at ur 5151 lvls and by the time u replied nifty already down 50 points at 5100 lvls...we certainly need faster way of communication..coz in normal market i would have not ask for every lvls to go long or short........problem comes when market turns abnormal.........