NIFTY Options Trading by RAJ

[BabaMagic]

Anup & Niftytaurus,

Based on my observations, 90% of the times it will test the breakout/breakdown levels atleast once after sustaining b4 meeting the targets.

Taking today's case, The upside breakout level was sustained at 12:26 PM & at that point of time Nifty Spot was at 6263 levels(6 points above the actual breakout level). It made a high of 6273 but reversed back to 6257 levels at around 2:30 PM b4 achieving the target of 6277.20 at 3 PM.

Secondly, This strategy will achieve its 0.70% target from the breakout/breakdown levels on most days(more than 80%), which means u can go for a full monty even if the 0.325% target gets achieved in the first 10 minutes itself(very very rare), u can play for the remaining 0.375% target.

Logically, The difference between the breakout/breakdown levels and the 0.70% target is more than 40 points on nifty cash & it can't make a move of 40 points in 10 minutes.

Will be more than happy to illustrate this in details as & when such movement occurs.

Hope i have answered ur query.

Thanks Always!

 

[appajib]

Anup & Niftytaurus,

Based on my observations, 90% of the times it will test the breakout/breakdown levels atleast once after sustaining b4 meeting the targets.

Taking today's case, The upside breakout level was sustained at 12:26 PM & at that point of time Nifty Spot was at 6263 levels(6 points above the actual breakout level). It made a high of 6273 but reversed back to 6257 levels at around 2:30 PM b4 achieving the target of 6277.20 at 3 PM.

Secondly, This strategy will achieve its 0.70% target from the breakout/breakdown levels on most days(more than 80%), which means u can go for a full monty even if the 0.325% target gets achieved in the first 10 minutes itself(very very rare), u can play for the remaining 0.375% target.

Logically, The difference between the breakout/breakdown levels and the 0.70% target is more than 40 points on nifty cash & it can't make a move of 40 points in 10 minutes.

Will be more than happy to illustrate this in details as & when such movement occurs.

Hope i have answered ur query.

Thanks Always!

Bhai does this work for Banknifty too ?

 

[BabaMagic]

Have tried testing this strategy on Banknifty & Stocks several times in the past....it didn't gave favourable results.

Thanks!

 

[anup]

Thanks for explanation...One more question :

Suppose the upside breakout is at 6200and Target 6220. And think at 10.40 Nifty crossed 6200 at 10.47 and Nifty reached 6220... And nifty comes down to 6200 at 11.00... Can we still take the position

 

[BabaMagic]

Yes you can.

U may refer to post #2545 where the same case occurred. After achieving the target in the 10th minute itself..it went back & tested the levels of 6121.20 again b4 achieving the target of 6064.

However, in this case I will execute the trade with small qty.

Unfortunate to miss out that day.

Nite Nite!

 

[prabhsingh]

I think Market has tendency to touch 6333 levels which is also going to touch very important 0.618 Fib levels.

Nifty made a high of 6332.60 (SPOT).I am not saying market cant move more but look at importance of Fib levels.

 

[sahen]

I was looking for some post on Option Trading!!! But it seems that topic of thread has been changed.....

 

[avny]

MAX OI of CE has changed to 6400

so short can be taken around 6400,if MAX OI does not change again

 

[anup]

Wont suggest taking long positions now in the markets and those who have long positions should cover them. Buying call options on Nifty is a good strategy right now.

What are you talking ?.. U wont suggest long position and u r advising to take nifty calls....

 

[Option.Trader]

Reasons why i feel Nifty is already in the bear market:-
1. Trend changed from Bull to Bear on 24th Oct(Refer to my earlier threads).
2. PCR below 1 since then
3. Nifty MACD chart turned negative today.
4. Majority of the Nifty 50 stocks with high weightages are now approaching
towards negative MACD. Some already in the negative.

So exactly after 2 months of Bull ride(28th August till today), its time for the BEARS to enjoy the ride.

Catch this opportunity before everyone does.

CHEERS!

Your other logic looks reasonable but the trend changing should undergo some serious tweaks.. it exactly did opposite after the day..not trying to be picky, but woud benefit all