Nifty & Bank Nifty Trading Strategy as on 15 May’13

Nifty as on 14 May’13– 5995.40 (+14.95)         Bank Nifty as on 13 May’13 – 12583.60 (+14.75)

Market always tests your patience and if you lose it than for sure you are going to lose you hard earned money also. Even after Monday’s sharp fall I clearly told that we need one more confirmatory close, and market has not given. Does that mean, still there is possibility of upside? Answer is unclear but, if Bears were strong enough than we would have seen continuation of weakness today. Let’s see, what happens today.

Nifty Trading Strategy

If Nifty, moves and sustain below 5975 than probably we might see continuation of downtrend, but on holding above 5975 prices may continue to consolidate between 5975 and 6115.

I had given Nifty option Long Strangle Strategy.

Nifty Long Strangle

Strike Price

Options

Recomm

LTP

Profit/Loss

6200

CE

50.15

18.3

5900

PE

25.25

43.85

75.4

62.15

-13.25

 

Strategy is running in a loss of Rs. 13/- .  Traders may hold this position, with financial stop loss of 25/- or may exit from position, as if Nifty start moving in consolidation than this strategy may turn in loss.

Bank Nifty Trading Strategy

As I said earlier, we need some confirmation to take our stand. From yesterday’s action nothing is clear, so wait for one more session. Recommended strategy is at breakeven, and if today Bank Nifty fails to give desire movement than probably strategy will enter into a loss. I think it is better to hold position with financial stop loss of 30/-.

Bank Nifty Long Straddle

Strike Price

Options

Recomm

Lot Size

Profit/Loss

12800

CE

256

139.75

12800

PE

277

403.9

533

543.65

10.65

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