NIFTY Options Trading by RAJ

[healthraj]

Full Target of 60 points met. NIFTY Made low of 5972. Closed the call.

Those who want to Trade the MAX Pain theory for Expiry.

Since the MAX Pain is at 6100 and Trend support is at 5940, Monday NIFTY can Test 5940 And so can buy Naked Call Options (6000CE/ 6050CE) on Monday.

But those want to Trade today itself Can try and Sell the Pair 6050CE-6150PE Available now at around 95.

Risky Can sell 6100PE at 120+ and hold it till Expiry to get atleast 100 points profit.

This is based on MAX Pain @ 6100 and if the MAX Pain changes you have to adjust your positions accordingly.

Overall I am expecting the market to Reverse from here or Around 6040 levels.

At today's Close the MAX Pain changed to 6050 from 6100. So it might be a sign for further downside in this market. May be surely another 50 points. Or if 6200 is the Top (MAX OI @ CE) and if MAX Pain is at 6050(Difference of 150 points), the bottom need to be 6050-150 = 5900. So may be will see the 200 DMA of 5875 being Tested.

In summary the above positions need to be adjusted for 6050. And better to wait for the Bottom to be formed in 60 min chart before taking any (LONG) positions.

 

[bapu4]

Dear Raj ,
Many a times i have seen that instead of obeying the OI and COI, the price obeys the IV !! Suppose the OI is indicating downside and IV of CE is less than PE, then the price goes up instead of going down !!
So, how should we judge the movement !!

Also ,please guide, how to interpret the volatility curve,intraday and positional pivots' curves given in the OAT !!

For eg. i am posting the OAT result for ARVIND !! where would the movement take place ??

God Bless U !!
Rgds !!

 

[healthraj]

At today's Close the MAX Pain changed to 6050 from 6100. So it might be a sign for further downside in this market. May be surely another 50 points. Or if 6200 is the Top (MAX OI @ CE) and if MAX Pain is at 6050(Difference of 150 points), the bottom need to be 6050-150 = 5900. So may be will see the 200 DMA of 5875 being Tested.

In summary the above positions need to be adjusted for 6050. And better to wait for the Bottom to be formed in 60 min chart before taking any (LONG) positions.

The MAX Pain once again changed to 6100. Friday's Resistance of 6040 is also broken this morning. So NIFTY should be testing at least (60 points from 6040) 6100 SPOT, which is also the MAX Pain. I am not sure how many of you were able to go Long above 6040. Those who missed the Long can Try for Short around 6100 SPOT to Test the Pivot of 6040 once again.

On Friday those who traded for the MAX Pain can close the positions now with Profit.

In all the Charts the Trend is Still Negative because in the 60 min Chart it is Still not bottomed out. So it would ideally good to Sell around 6141, which is the Channel Resistance in 60 min chart. However as indicated on Friday, 30 minute chart has made a double bottom at 5986 and 5972 and bounced back. Going by that 120 points from 5972 would be 6092 SPOT, which could be the Level to Watch for deciding the next direction for Today

There are only three more days to Expiry and so sometimes the Technicals are not strictly followed. so those who feel it is risky can avoid trading.

 

[singlap]

What are the babamagic levels for today ?

 

[babumehta]

The MAX Pain once again changed to 6100. Friday's Resistance of 6040 is also broken this morning. So NIFTY should be testing at least (60 points from 6040) 6100 SPOT, which is also the MAX Pain. I am not sure how many of you were able to go Long above 6040. Those who missed the Long can Try for Short around 6100 SPOT to Test the Pivot of 6040 once again.

On Friday those who traded for the MAX Pain can close the positions now with Profit.

In all the Charts the Trend is Still Negative because in the 60 min Chart it is Still not bottomed out. So it would ideally good to Sell around 6141, which is the Channel Resistance in 60 min chart. However as indicated on Friday, 30 minute chart has made a double bottom at 5986 and 5972 and bounced back. Going by that 120 points from 5972 would be 6092 SPOT, which could be the Level to Watch for deciding the next direction for Today

There are only three more days to Expiry and so sometimes the Technicals are not strictly followed. so those who feel it is risky can avoid trading.

Dear Raj, what is the logic in 60 min chart is not bottomed out. How will we can know that it has bottomed out?

 

[healthraj]

In the 15 min chart, First Sell Signal Generated at 6096. As mentioned in the morning please watch the level 6090-6100 and Take your Short positions accordingly.

 

[healthraj]

Dear Raj, what is the logic in 60 min chart is not bottomed out. How will we can know that it has bottomed out?

For that I need to post the 60 min Chart for you to understand. Right now for 60 min chart to bottom out, NIFTY needs to go below 5940.

 

[babumehta]

In the 15 min chart, First Sell Signal Generated at 6096. As mentioned in the morning please watch the level 6090-6100 and Take your Short positions accordingly.

can you post a chart for this too? is this in your new oat version or old one?

 

[avny]

@ raj,
i am holding a pair of 6050 (CE+PE),short at 102

can u tell the possible adjustment,in case nifty goes >6100,or <6000

at present holding with a SL of 15 points

thanks

 

[BabaMagic]

Morning All,

Upper breakout - 6093.55, TGT - 6113.35, SL - 6044.80
Lower breakout - 6033.75, TGT - 6014.15, SL - 6082

My View:
Looking at the India VIX currently, it looks like we may see a sharp downmove today.

So, the chances of lower breakout seems to be more than the upper one.

Its better to wait patiently for either of the breakouts to sustain before executing any trades.

I had posted in one of my earlier thread to avoid this breakout strategy if either of the levels are not sustained before 2PM. So kindly adhere to it.

Happy Trading!