NIFTY Options Trading by RAJ

[healthraj]

You mean to say MAX COI was 7300-7700. Or am I missing something. And I assume u have bought 7400 ce around 100. I have been doing paper trading on this concept. Want to start real trading after a couple of trades.

Regards,
MSA

I have sold the Pair 7300-7700. I have not bought 7400CE because I am not too sure about the direction

 

[healthraj]

Closed the Positions 6800-7300 with 15 points profit since there was a BO at 7260.

And SOLD 7000PE-7500CE @ 76. Bought 7300CE @ 100. Net outflow was 25.
End of the Day Closed the positions with 50 points profit.

MAX OI still at 7000-7500 and the COI was changed to 7300-7700.

In the Daily Futures chart, The Pivot for the MAJOR Trend is at 7286 and the PIVOT for the Minor Trend is at 7376.

End of the Day since the MAX OI was 7300-7700, I have also sold the same pair @ 100. There might be some more UP side left Say till 7420, which might be tested tomorrow. As per the Hourly charts, if Minor Trend RESISTANCE is at 7335 and the Support at 7232. So if 7335 is broken down then will close the 7300-7700 Pair.

In the Lower timeframe , it is Trending UP, And for the downtrend, NIFTY Futures need to come below 7345.

MAX OI still at 7000-7500.

MAX COI is at 7200-7500.

So closed the 7300-7700 Pair for 8 points profit and sold 7200-7500 @ 113.

 

[new2trade]

This RBI policy is positive. Now maybe the markets will go up factoring it after commentary.

 

[healthraj]

I think you can become a Magician. I don't know how OTM 8000CE which is trading at 23 can become 69.

With the current Implied Volatility of around 13.7 for 8000CE, 69 will be reached only when NIFTY goes to around 7600. (Which is possible, I am not syaing it is not possible). But 7600 is not visible in the Lower timeframe or Hourly charts.

So my answer is that 8000CE will not touch 69 tomorrow.

RBI might not cut the Rates but might give some +ve signal. Now Since there is a +Ve signal, People might jump to Buy and that is where the Instituitions might OFF Load their stocks and PRESS the SELL Button...

NIFTY has reached 7500 not because of any fundamental reason. It is purely because of Speculation and Technicals. Modi government cannot do any magic to turn the GDP from 3% to 8%. They will have to take their own time.

So technically speaking, there is a SELL signal in Daily charts above 7550 Futures and NIFTY Tested the Pivot at 7286 and has bounced back technically. For a Clean UP move it needs to bottom out and the bottom will come at around 7000.

NIFTY Has not moved anywhere but JUL-14 8000CE has lost 5 points. So never Buy a Strike where the MAX OI is there...

 

[healthraj]

This RBI policy is positive. Now maybe the markets will go up factoring it after commentary.

There is no rate cut. So any reason why you are saying it is positive. Does the RBI governor promise any rate cut in future ?

 

[prabhsingh]

NIFTY Has not moved anywhere but JUL-14 8000CE has lost 5 points. So never Buy a Strike where the MAX OI is there...

Cant this be concluded that writers are expecting Nifty to touch 8000 between now and July and then they will start eating away the premium for 8000CE?

 

[healthraj]

Cant this be concluded that writers are expecting Nifty to touch 8000 between now and July and then they will start eating away the premium for 8000CE?

Whatever we write about 8000 is pure speculation. First 7500 needs to be broken on the UP side. Right now 7500 is acting as a BIG Resistance. So for that NIFTY needs to spend a considerable time near 7500 and build the support near 7500. So right now 8000CE is just a hope, it might not be the reality.

 

[new2trade]

There is no rate cut. So any reason why you are saying it is positive. Does the RBI governor promise any rate cut in future ?

I feel its positive as the SLR cut coupled with allowing 100% FDI in many sectors is a step in the right direction for the future.
The fight against inflation cannot be won in a day so maybe rate-cut is not in the good interest at this point of time. Once FDI starts flowing in, they may go in for a cut but RBI will not promise at this point of time is what I believe

 

[prabhsingh]

Buy HeroMotoCO for excellent results in coming days.

Already rocking.

 

[healthraj]

MAX OI still at 7000-7500.

MAX COI is at 7200-7500.

So closed the 7300-7700 Pair for 8 points profit and sold 7200-7500 @ 113.

MAX COI has changed from 7200-7500 to 7200-7800. MAX OI is at 7000-7500.

In the Hourly charts the Resistance is at 7412 SPOT. So at 7410 SPOT, Bought 7450PE @ 122. So net outflow is 9 points.