Category Archives: Option Trading Strategy

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

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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Nifty Technical Analysis as on 13 May’13

Nifty is very near to test its recent swing high of 6111.80, but little far from testing all time high of 6338.50, as Bank Nifty is very close to it. After such a sharp rise in matter of just 18 trading sessions, most of the traders and analysts (including me) are skeptical whether Nifty will continue to move with such vigor?

According to my analysis, from this point onward technically Nifty has a potential to move towards 6150, and subsequently 6300. I am saying technically, because if tomorrow some Global News flash than we don’t know how market players will react to it.

Momentum oscillator RSI (14) is still in support of rising prices, although intensity may reduce, but still it can walk further.

Bank Nifty & CNX IT has a chance to move further, which in turn may support to Nifty also. Risk from here is, If Nifty does not move higher and turn sideways than gradually momentum will start falling and negating upside possibility.

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Bank Nifty Technical Outlook for 13th May’13

Bank Nifty as on 10 May’13 – 12752.30

Bank Nifty as on 10 May’13 – 12752.30

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

  • Bank Nifty is moving in a channel from quite a long time, and in recent past it is stuck near a trend line and consolidating here from last twelve trading sessions.
  • If we compare weekly chart, than in last week Bank Nifty made a high of 12783.30 and in last week it made a high of 12783.05. Exactly same high. Only significant difference between prior week’s high and last week’s high is, closing. In the last week Bank Nifty closed near highs, whereas in prior week, it closed near lows.
  • On 29th Jan’13 Bank Nifty made a high of 12960.65 and took a U turn. Now Bank Nifty is very close to this high.
  • As depicted in attached momentum oscillator RSI (14) is showing potential negative divergence, but situation is different on weekly chart, which suggest continuation of trend. This disparity is seemingly reflected in price action, as moving in choppy way from last couple of days.

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Nifty & Bank Nifty Trading Strategy as on 08 May’13

Nifty as on 07 May’13– 6043.55 (+72.50)        Bank Nifty as on 07 May’13 – 12631.50 (+235.10)

What a winning march from Bull Camp. It was like; nobody can stop us, just get out from our way. Anyways, I am happy that few of my readers have minted money from my recommended risk free trading strategies in Nifty & Bank Nifty.

Nifty Trading Strategy

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Nifty & Bank Nifty Trading Strategy as on 07 May’13

Nifty as on 06 May’13– 5971.05 (+27.05)                Bank Nifty as on 06 May’13 – 12396.40 (+2.80)

You think market is playing mischievously or market players are confused. Whatever it may be, as my friend said yesterday Market is Supreme, there is no place for anything else.  In last session Nifty gained 27.05 but almost during a whole day prices remained engulfed by last Thursday’s move; consecutively from last two days prices are moving within a range.

Nifty Trading Strategy

When market is not giving any clear clue why to hurry? Let’s wait for clear direction and we take our decision accordingly.  Option traders can go for Long Strangle.

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Tata Steel – Opportunity for Investors to look in

Tata steel as on 3 May’13 – 311.20

Tata steel as on 3 May’13 – 311.20

Tata Steel was consistently falling from the beginning of 2013, till last few days. As depicted in attached chart, prices were falling in a channel and recently it broke out from this channel line, and attempting to move higher. Current pullback is supported by momentum also.

According to my understanding, price correction in Tata Steel can be over; it is very much possible that it may extend in time.

Stock Trading Strategy

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Nifty & Bank Nifty Trading Strategy as on 02 May’13

nifty doji -way to profits

Nifty as on 30 Apr’13 – 5930.20                       Bank Nifty as on 29 Apr’13 – 12561.55

Nifty moved as per expectation, opened at 5930, moved above 5940 and posted a high of 5962.30 and panic selling button triggered, made a low of 5867.80 and again moved higher. What a roller coaster ride. Finally Nifty settled at same level where it opened, which gave us a candle of Doji.

Doji at important resistance level is clear signal of fading momentum, but to confirm the fact we need subsequent weak close.

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