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.

Strike Prices: – 6000 CE@ 75 + 5900 PE @ 59

Total Investment – (75+59=134) X 50 = 6700

Stop Loss = 30/35 (According to trader suitability)

 

Bank Nifty Trading Strategy

In my last update I have mentioned that Trader has to play very smartly in Bank Nifty. In the last session Bank Nifty opened at 12358 and firstly moved lower and then higher, so didn’t give any chance according to my suggested strategy.  It seems that Bank Nifty is getting support from lower levels.

I expect some wild moves in either direction, based upon this, I advise to initiate Long Strangle in Bank Nifty also.

Strike Price: – 12800 CE @ 99 + 12000 PE @ 150 (PE’s are slightly overpriced)

Total Investment – (99+150=249) X 25 = 6225

Stop Loss = Keep 60 /75 stop loss (which comes to around 1500-2000, According to trader suitability)

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