Nifty Intraday Pivot Points

[SavantGarde]

Hi Prabhan,

PUT Buying Is Only When It Looks Like Market Is Finding Resistance Or Looks Tired/Sluggish....

Therefore, Today PUT Buying Is Not Advisable....Perhaps May Present An Opportunity Tomorrow Or Dayafter.....So Hold Your Horse...For Now

Infact Risk Reward As It Stands Is In Favour Of 4600CE

Happy & Safer Trading

SavantGarde

Sir,
Can I buy 4600PE, as lots of Open Interest are building up. This selection of mine is not on basis of low premium value. I need yuor advice before I invest.

 

[enygma]

Prabhan,

Open interest building up means put writers are more confident of 4600 holding atleast for now. The levels at which puts open interests are maximum means they are support zones and vice versa for the calls.

We are yet to see any downward bias to go out and buy puts.

P.s : Did not see that Savant had already replied to your query.

Sir,
Can I buy 4600PE, as lots of Open Interest are building up. This selection of mine is not on basis of low premium value. I need yuor advice before I invest.

 

[Prabhan]

Hi Prabhan,

PUT Buying Is Only When It Looks Like Market Is Finding Resistance Or Looks Tired/Sluggish....

Therefore, Today PUT Buying Is Not Advisable....Perhaps May Present An Opportunity Tomorrow Or Dayafter.....So Hold Your Horse...For Now

Infact Risk Reward As It Stands Is In Favour Of 4600CE

Happy & Safer Trading

SavantGarde

Thanks Sir. I think I need to wait to decide which to buy from 4500CE/4600CE/ 4600PE/4500PE. Depending on your advice will do the trade. But to catch 46000CE, I think I need to wait for correction. If correction is going to happen, then why we cant take 4600pe? Correct me If I am wrong sir.
My apologies for keep on asking stupid questions from you.

 

[Aqua9]

Bollinger's are contracting so much looks like major action is expected on Tuesday/Wednesday.

regards
arun.

 

[spiritunit]

Arun, what kind of action? bullish or bearish

 

[SavantGarde]

Hi Prabhan,

The Way You Are Thinking About Market Trend Is More In Terms Of Positional.....We Are In The Expiry Week....Therefore, Thinking Process Needs To Change Tracks For Quick Gains....Understand

Nimbleness & Quick Footed Thinking....& Follow Through Of Action Is The Need For This Day & Perhaps The Week....

4600PE - Is Not The Way Yet......Because Market Bias Is On The Upside...& There Is No Sign...Yet Of Any Weakness....

Market Is Looking....More Toward 5000+ Provided Good Follow Through Is Maintained On The Crack...Of 4700+...

So If You Picked Up 4600PE Now....& Market Quickly Moves Up Taking Out The Resistances Quite Easily....What You Think...Will Happen To Your 4600PE

Correct Market Perception Is Important...Unfortunately...I Can Only Give Clues...& But Difficult To Teach....

Happy & Safer Trading

SavantGarde

Thanks Sir. I think I need to wait to decide which to buy from 4500CE/4600CE/ 4600PE/4500PE. Depending on your advice will do the trade. But to catch 46000CE, I think I need to wait for correction. If correction is going to happen, then why we cant take 4600pe? Correct me If I am wrong sir.
My apologies for keep on asking stupid questions from you.

 

[Aqua9]

Arun, what kind of action? bullish or bearish

Hi Spiritunit

We will have to wait and watch for that, but bollinger contraction in small range normally leads to break out.

It all depends on how 4700 resistance acts tomorrow.

regards
arun.

 

[vicky_ag]

Hi Spiritunit

We will have to wait and watch for that, but bollinger contraction in small range normally leads to break out.

It all depends on how 4700 resistance acts tomorrow.

regards
arun.

BB contracting does lead to a breakout but what if we have the breakout on a gap up/down.

Now, from what I came to learn today(thanks to engyma for this), we have a huge buildup of calls at 4700 which it is a resistance point.

Does it mean we would have a breakout towards 4700 but then do a sudden turnaround? Anyone?

 

[spiritunit]

US Markets opened in Green, but not in big movement as like couple of days back, so 4700 could be a big resistance and then 4731 (52 week high) tomorrow it has to close above this level to go on new highs, otherwise it will be a turnaround for sure..

 

[enygma]

Vicky,

BB contracting has to be look at, depending upon which TF we are talking about. For a past few days we have been seeing BBs contracting on daily charts. So based on it, a breakout/breakdown is possible on the daily charts.

Now about the gap up possibility, we had the same situation today. On Friday, there were significant number of call writers on the 4600 call (including yours truly). As it seemed like stabilizing over 4600, the call writers moved to 4700 and hence the increase in the 4700 call open interest. So depending upon the strength of the upmove tomorrow, you can expect something similar although I would be surprised by it.

On similar lines, 4600 puts more than doubled in OI today so that will act as a support.

So unless global cues are extremely good or bad, I would expect a consolidation between this range of 4580 to 4720. Keep a watch on how this open interest changes intraday as well.

Regards,
Enygma.

BB contracting does lead to a breakout but what if we have the breakout on a gap up/down.

Now, from what I came to learn today(thanks to engyma for this), we have a huge buildup of calls at 4700 which it is a resistance point.

Does it mean we would have a breakout towards 4700 but then do a sudden turnaround? Anyone?