Category Archives: Option Trading Strategy

practical application of option trading strategy on nifty, bank nifty, equity stocks.

Bank Nifty Technical Analysis Outlook for 10 June, 13

Bank Nifty as on 07 June'13 - 12231.50 (-244.15) Weekly Chart

Bank Nifty as on 07 June’13 – 12231.50 (-244.15) Weekly Chart

Bank Nifty as on 07 June’13 – 12231.50 - Daily Chart

Bank Nifty as on 07 June’13 – 12231.50 – Daily Chart

In last five trading sessions of the week; Bank Nifty moved in a very narrow range with negative bias. Unfortunately, if you on short side than on Thursday your short were taken away, and if Long on Thursday then your stop would be taken away on Friday.

In such a tapered range what to expect further, let see-

  • Week on week basis Bank Nifty lost only 244.15 points, but consecutively it is third week where we got negative close, after posting life time high.

(To read further, download report)

 

Nifty & Bank Nifty Trading Strategy as on 4 June’13

Nifty as on 3 June’13– 5939.30 (-46.65)    Bank Nifty as on 3 June’13– 12402.10 (-73.55)

Nifty & Bank Nifty continued moving lower also on Monday, but CNX IT index moved higher as Infosys was in lime light. I saw many analyst were blindly betting on Infosys and giving some huge targets, I don’t know whether it achievable or not, but as far Technical’s are concerned I think, Infosys has turned lower exactly from 2625 which is crucial resistance point. Below this level I expect Infosys to stay in the mixed range, above which it enters into fresh bullish territory. What I am trying to explain is, if you don’t understand the basics than just don’t jump into such high volatile stock, even though you respect Mr. Narayan Murthy.

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Nifty & Bank Nifty Trading Strategy as on 29 May’13

Nifty as on 28 May’13– 6111.25 (+28.10)    Bank Nifty as on 28 May’13 – 12950.00 (-11.55)

In the last session, Nifty made a high of 6127.65 and turned back. Didn’t give us a chance to stay long.

Bank Nifty gave a Doji Candle, closed where it opened in the session.

According to my analysis, there is equal chance for Nifty to turn positive or negative, so I will not be surprised wherever it goes. If Nifty turns positive than CNX IT Index can be contributor to it, because Bank Nifty is less optimistic.

Nifty Trading Strategy

Traders can turn attention on long side above 6120-6130 level, with only 20-25 point stop loss. If not, than wait for time being.

In any case, Nifty moves and sustain above 6130 than traders can also Long Call of 6200 of next month expiry, but for which essential condition is close above this level, otherwise it is better to exit from position.

Traders can initiate Long Strangle in Nifty. Continue reading

Nifty & Bank Nifty Trading Strategy as on 28 May’13

Nifty as on 27 May’13– 6083.15 (+99.60)    Bank Nifty as on 27 May’13 – 12961.55 (+192.20)

In my last post I had clearly mentioned that we can’t overrule the possibility of bounce, and it took place. I had also mentioned about specific levels and strategy, it worked well. (To view click here)

Similarly, Bank Nifty post I have mentioned step by step price point, where to look for and how to look for, barring one fact of opening, Bank Nifty followed rest four conditions perfectly. (To view click here)

Nifty Trading Strategy

In last session Nifty made a high of 6099.90.  As I said, I will turn my attention on long side once NIFTY moves above 6120 level. So, it is clear if you see nifty moving above 6120 than go along with only 20-25 point stop loss. If not, than wait for time being.

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Nifty & Bank Nifty Trading Strategy as on 24 May’13

Nifty as on 23 May’13– 5967.05 (-127.45)    Bank Nifty as on 23 May’13 – 12636.50 (-371.25)

And finally prices moved substantially lower.

At Way2Profits, we are expecting such move and we have mentioned in our last articles also. When you follow Technical Analysis, you actually don’t need to search for reason, reason will follow the suit. Yesterday, it was Nikkei than global cues, anyways.

Nifty Trading Strategy

We were expecting Nifty to turn lower. In last article, I had mentioned that go short below 6070-6065 with immediate target of 5975, which easily came. Now, what next?

Nifty closed at 5967, in the similar range Nifty has support from previous swing high. Now, it is advisable to go short only below yesterday’s low of 5955, for which initial target comes near 5900. From this level, practical stop loss is far, so trader has to follow financial stop loss.

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Bank Nifty Technical Outlook for 20th May, 13

Yes friends, it is not a just coincidence, when in last weeks article, we mentioned that “Bank Nifty Marching ahead to test all time highs…”

At Way2Profits, we always say what we feel.

Bank Nifty as on 17 May’13 – 13317.10 (+536.95)

Bank Nifty as on 17 May’13 – 13317.10 (+536.95)

From above charts of Bank Nifty, few things I would like to high light here.

  • In the last week Bank Nifty already tested all time highs of 13303.60 and finally settled higher at 13317.10, whereas Nifty is lagging far behind to test these highs

(To read further download the article)

 

 

Nifty & Bank Nifty Trading Strategy as on 14 May’13

Nifty as on 13 May’13– 5980.45 (-126.80)       Bank Nifty as on 13 May’13 – 12568.85 (-211.30)

Nifty witnessed a sharp reversal, after steep rise of last twenty trading sessions, negating upside continuation. Lastly Nifty posted high of 6114.55, made a double top and turns lower.

Nifty Trading Strategy

I had given Nifty option Long Strangle Strategy.

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