Nifty going perfectly as per price action trading

Hi friends. This is girish once again.

In one of my earlier post i mentioned the nifty view that it will come to around 10500 level as per price action .

https://priceactionandoptionstrading.wordpress.com/2018/05/19/nifty-daily-chart-view-34/

NCNIFTY

now see today nifty exactly came and bounced from 10500

NCNIFTY.jpg

Nifty has now formed a spinning top . Tomorrow check for confirmation to go long and if not , better avoid long. But if you check the nifty weekly chart it has formed a bearish engulfing pattern. This week closing will decide its strength.

So , longs better be hedged as trend is not looking strong uptrend as per weekly chart . Daily chart might give a small rise and then fall . So, unless nothing is clear on daily chart , don’t trade on hope . Go as per the price action . Daily chart when it shows a bearish reversal, go bearish .Options of this month are now under theta action . So, debit spread is essential for option buyers. Option sellers can do modified calendar spread just like i did this month .

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

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Nifty daily chart view

Hi friends. This is girish once again.

Plz see the below attached image.

NCNIFTY

Nifty on daily chart has now entered into the support zone after reversing from shooting star . Now look for buying signals and confirmation in this zone to go bullish . If no signal then wait.

Those who are short in future or long in puts can now sell one otm put to lock your profits. You can select its deepness accordingly.

Nifty now entering near the open interest lower boundary. So locking profits is better as now writers will try hard to protect the lower boundary.

Also half of the month is already passed with the effect of the option greek “Theta” getting stronger . So option buyers better be hedged with debit spreads.

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

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Banknifty daily chart view

Hi friends. This is girish once again.

Plz see the below attached image.

BANKNIFTY_Daily_13-05-2018

Banknifty is already  running into an uptrend from the past month. Now it has entered into the gap resistance zone . One can better wait if retracement happens to buy on dips with buy signals and confirmation if required.

Nifty is also into uptrend with writers creating 10500 and 11000 boundaries.

Those who are already long in future can now sell call options to form a covered future strategy and options long can form a debit spread with profit locked. Even if the retracement happens , profit of longs will be protected by strategy . Also if market goes up, delta difference of the strategy will still make u profit.

Options is really nice if one can understand the practical meaning and applications of greeks and how to use in combination with charts and open interest. 

Always lock your profits with options position management and carry your trade comfortably.

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

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Nifty going as per price action trading

Hi friends. This is girish once again.

Plz see the below attached image showing nifty earlier view.

NIFTY_Daily_30-04-2018

Nifty reversed from the gap resistance zone and again reversed from the bottom support zone . Plz see the below attached image .

NIFTY_Daily_07-05-2018

Nifty is still in an uptrend .One can go with the ongoing trend with covered call strategy with one position management if required to optimise the profit with predefined SL.

Also writers have created boundaries of 10500 and 11000. So trade accordingly as per the trend.

Don’t assume anything in nifty and buy options and loose money  just like past month where uptrend was clear but sadly many people blindly bought puts on hope and lost money .

Better follow the price as it is said ” Price is God”.

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

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Nifty daily chart view

Hi friends. This is girish once again.

Plz see the below attached image.NIFTY_Daily_20-04-2018

Nifty on daily chart forming an inside bar pattern around the imp max pain level of 10500. From the past few days market is oscillating around that level with premium eating going on .

With next as expiry week, options buyers be careful and go with debit spread strategy .

Future traders can go with covered strategy.

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

TO  LEARN  MORE  ON  PRICE  ACTION  AND  OPTIONS  TRADING  

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Is nifty going to be really bull this time or might be a bull trap ??

Hi friends. This is girish once again.

To understand we will co-relate nifty and USDINR daily chart.

First let us see the nifty daily chart.

NCNIFTY

Nifty has given a sharp fall prior from the budget. Now the potential resistance areas are on the chart. Look for sell signals and confirmation in these zones to go bearish .

Now look at the USDINR chart .

RNUSDINR

From the chart , it seems in uptrend . So there is a probability that nifty might be likely to fall if this uptrend continues ..

Also , one thing might happen . Till the USDINR completes its retracement, nifty will go up and as USDINR comes into support zone and reverses , nifty will be likely to go down further.

So, trade cautiously with proper hedging and look for proper signals and confirmation to trade .

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

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Understanding intrinsic value decay

Hi friends. This is girish once again.

The intrinsic value is determined by the difference between the current trading price and the strike price. Only in-the-money options have intrinsic value. Intrinsic value can be computed for in-the-money call options by taking the difference between the spot price and the strike price. Intrinsic value can be computed for in-the-money put options by taking the difference between the strike price and the spot price. Out-of-the-money options have no intrinsic value.

As few of knew , intrinsic value is a characteristic feature of ITM options. But  in banknifty weekly expiry , there is a good decay in the intrinsic value of ITM options which in turn affects the pay off chart and buyers are getting losses more than expected in ITM options and sellers are making money in intrinsic value decay.

So how to benefit ITM intrinsic value decay?????

One can create a reverse arbitrage to make profit in banknifty weekly expiry.

 

Friends i am providing my own views. U plz trade as per ur own views. Don’t blindly follow me .

TO  LEARN  MORE  ON  PRICE  ACTION  AND  OPTIONS  TRADING  

 CONTACT ( GIRISH PATIL : 9167461604 )

TO  KNOW  COURSE  DETAILS  AND  FEES  VISIT

MY COURSE DETAILS AND FEES