NIFTY Options Trading by RAJ

[rahulmalik]

Red line - Major Resistance (1)
Dotted Red Line - Minor Trend Resistance (2)
Dotted Yellow Line - Average of Major and Minor Resistance (3)
Green Line - Major Support (4)
Dotted Dark Green Line - Minor Trend Support (5)
Dotted Light Green Line - Average of Major and Minor Support (6)

So Ideally it would be Good to
BUY - When the stock / index goes below 4 or 6
SELL - When the stock / index goes above 1 or 3

Thank you so much Raj, for sharing this, how can i get them on my charts. Please advice.

 

[soumanag]

Dear friends,

I have a small question. Let us suppose that i buy a call option at 10 rs and it goes to 48 rs. On expiry day it is trading at 48 rs and i put a square off order at 50 rs. but the best bid is at 45 and my order of 50 rs doesnt get executed. My question is if I let it just expire like this then what price/value will i realize for my call?

will be happy if someone can answer

Hi,

There is a reason that in the money call / put options trade at lower than their theoretical value at expiry. This is due to STT trap during expiry. When you let in the money options expire, you are basically excising the contract and liable to pay a high STT. STT on BUY option positions that get exercised is 0.125% of the entire CONTRACT VALUE.
The following article from Zerodha would throw more light on this matter.

zerodha.com/z-connect/queries/stock-and-fo-queries/stt-options-nse-bse-mcx-sx

Bottom line DONT LET IN THE MONEY OPTIONS EXPIRE. In all probability you will get less than Rs 45/- for the option after tax if you let it expire going by your above example.

 

[healthraj]

Thank you so much Raj, for sharing this, how can i get them on my charts. Please advice.

I have shared the logic in my previous posts. I have used Polynomial functions.
If you don't have polynomial functions in your tool, the other way to look at this is like these

Normally,

The Major Trend Weekly charts is a Minor Trend in Monthly charts
The Major Trend Daily charts is a Minor Trend in Weekly charts
The Major Trend Hourly charts is a Minor Trend in Daily charts
The Major Trend Lower time frame (Less than 60 minutes) charts is a Minor Trend in Hourly charts.

So in essence you have to follow two Charts.
Let us say if you are a positional trader then you might be following Hourly and Daily.

So use Hourly charts as your minor Trend and Daily chart as your major trend. So accordingly if we use Hourly and Daily

Major Support, Pivot and Resistance are at 7976, 8360 and 8743
Minor Support is at 8008, 8153, 8300
All the above levels are in Futures Rates

 

[tradersarajahan]

Thanks Raj Sir for expalaining in simple manner. Sir I suppose this is a software tool. Is it possible for you to share this tool with us. Thanks

 

[healthraj]

Thanks Raj Sir for expalaining in simple manner. Sir I suppose this is a software tool. Is it possible for you to share this tool with us. Thanks

Sorry. No I am not planning to share this in the near future for FREE.

 

[tradersarajahan]

It is okay sir. Will not mind for a cost for such tools. Please post details. Thanks

 

[healthraj]

It is okay sir. Will not mind for a cost for such tools. Please post details. Thanks

I think you are mistaken. First of all it is forbidden in Traderji to do any such SELLing. I don't have any idea of SELLing. If at all I decide to give my tool, I will give it FREEly. Hope you understand.

 

[tradersarajahan]

Sorry sir, my mistake. When you said
"No I am not planning to share this in the near future for FREE"
Then I thought you are willing to share not for free but for some cost. Sorry again

 

[Anand_1986]

COI should be used for that day only.

Looking the MAX OI at 8000-8500, 8000 should act as the support.

See the Daily Futures chart

Thanks for your reply with chart today as per your point market bounced from 7997.15 in nifty. You have mentioned 8000 as support and 8500 as resistance :clapping:
I have one more query how can I interpret change in OI for Intraday.

Yesterdays market has given two oppurtunities 1.selling 8500CE and 8000PE 2.buying naked 8000CE

 

[soumanag]

Market trend turned bullish. Max chg OI @ 8100 - 8600. The range is wide so the move might be flat. Might test 8300 in next couple of sessions!!!
Will be bearish if 8200 Call writing picks up
Comments from members pls