Nifty Futures Positional Trading

[jamit_05]

Change of plan, not of heart.

Long over 5714.40 Futures. SL 15 points.

Target will be decided if the entry survives till EOD.

Setup nullified... no longs. QED.

 

[jamit_05]

Walking on the lines of: Plan the trade, and then, trade the plan

So lets see what powers are at play.

1) NF, on Friday, made the exact low to fill the long held Gap. See the image:

2) Moreover, Spot failed to close below Thursday low of 5675.75 for the 2nd day, inspite of such heavy selling.

3) The Premium fell from 44 to 28. Means longs have used the small rallies to get out and book loss. It appears as though big pockets are waiting for these longs to book losses, only after that they will take the market up. So, if the premium falls to normal levels of sub 20, then the time is ripe for an up-leg to start.

This boils down to one conclusion, there is a possibility that bulls might take over. Therefore, I will take a chance at longs.

Trade:

Long at 5701. 15 SL 37 points.

 

[Option.Trader]

Walking on the lines of: Plan the trade, and then, trade the plan

So lets see what powers are at play.

1) NF, on Friday, made the exact low to fill the long held Gap. See the image:

2) Moreover, Spot failed to close below Thursday low of 5675.75 for the 2nd day, inspite of such heavy selling.

3) The Premium fell from 44 to 28. Means longs have used the small rallies to get out and book loss. It appears as though big pockets are waiting for these longs to book losses, only after that they will take the market up. So, if the premium falls to normal levels of sub 20, then the time is ripe for an up-leg to start.

This boils down to one conclusion, there is a possibility that bulls might take over. Therefore, I will take a chance at longs.

Trade:

Long at 5701. 15 SL 37 points.

Did you take long, I thought your setup prevented you from taking one in your previous post

 

[jamit_05]

Did you take long, I thought your setup prevented you from taking one in your previous post

This is the plan for Monday. No longs yet.

Remember my struggle in the month of May! It was a lesson well learned.

 

[jamit_05]

Another show piece: A converging triangle which will set Nifty into the depths of 52-Week Lows!

 

[jamit_05]

Risky longs, with 50% position size, at NF 5687.10; SL 18 points.
Will make it a positional trade if the day shows strength, unlike yesterday.

 

[jamit_05]

Some honest folks are wondering whether it is a good time to get into MCX after this fall. Their Logic goes:

1. It is an established brand
2. With no competition
3. Regulated by the govt.
4. Company is generating Regular effortless income via Brokerage.

And now even the price is attractive. It is a win win situation. Right?

My take:

One legendary investor once said to the effect that if you ever find yourself in the spot where u r getting a very good deal, then ask God... Why me?
(Yes, I caught the sarcasm the moment I read it.)

There is always a catch in such things. The only entity I can rely on to take the best decision for me is:

Myself.

And if I don't understand someting, I wouldn't even consider going in. I will stick with cleaner areas of investing.

My verdict is to give MCX a pass (and FTIL). I have even stopped reading about them. I know enough to protect my money.

 

[Option.Trader]

Risky longs, with 50% position size, at NF 5687.10; SL 18 points.
Will make it a positional trade if the day shows strength, unlike yesterday.

Hope you didn't initiate this?

 

[jamit_05]

Hope you didn't initiate this?

NF is making an intraday consolidation pattern. Will wait for it to show in a 15 min Time frame and then will enter above it.

I prefer not to refer intraday charts. The entry as per daily chart is 200 points away. Hence, this time around, I am forced to work for my money. Arrggg!

 

[quinox]

my take is..nifty futures is going down to at least 5600 first before any meaningful up move...lets see