Nifty Holds 7546 on Weekly Basis,EOD Analysis

By | April 9, 2016 5:49 pm

FII

Weekly_SD

  • Nifty April Future Open Interest Volume is at 1.56 core with liquidation of  0.43 Lakh with increase in cost of carry suggesting short position were closed today, NF  Rollover cost @7740, broken it.
  • 8000  CE  is having Highest OI  at 84 lakh, resistance at 8000 .7500/8000 CE  added 7.2 lakh so bears continue to pound on bulls  added in range of 7700/7800 .FII sold 794 CE longs and 4.1 K CE were shorted  by them .Retail bought 24.2  K CE contracts and 7.4 K CE were shorted  by them.
  • 7500 PE OI@47.3 lakhs having the highest OI strong support at 7500. 7000-7600 PE added 0.8 Lakh in OI so strong base near 7500 will bulls will be able to hold as we have seen liquidation in 7500 first time in series .FII bought 12.3 K PE longs  and 3.4  K PE were shorted  by them .Retail sold 2  K PE contracts and 686 K PE were shorted  by them.
  • FII’s bought 180 cores in Equity and DII’s sold 159 cores in cash segment.INR closed at 66.46

Buy above 7575 Tgt 7595,7616 and 7640 (Nifty Spot Levels)

Sell below 7530 Tgt 7510,7490 and 7465 (Nifty Spot Levels)

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12 thoughts on “Nifty Holds 7546 on Weekly Basis,EOD Analysis

  1. The D

    @Harshad @ Rajmohan – I (and my trading group who trade my free calls) were able to successfully enter and exit a strangle of 7350 PE and 7750 CE (given on Friday).. today at 22% profit. It’s not much, but strangles and straddles are a well known method of making small gains provided one times the entry and exit well to avoid time decay etc.. For eg. Had Naveen followed the strategy listed above, he would’ve been able to minimize losses.

    @Naveen- In future you can either follow Brameshs chopad levels, or if options entice you, learn when to enter and exit strangles/straddles, he has in fact provided successful options strategies on various occassions.

    @ Agya- I sincerely hope Naveen or yourself, have NOT shorted Nifty or 7800 calls this morning. Would’ve been a complete disaster as the Index climbed 1.5%. Always follow levels, but be prepared for violent reversals.

    Reply
  2. Naveen

    Thanks sir,your articles are motivational and informative. Can you suggest me some best books starting from beginners to expert.
    And thanks to all who comment and suggest me.

    Reply
  3. Ram nene

    Sirji ,
    Need some info on below :

    “7500/8000 CE added 7.2 lakh so bears continue to pound on bulls added in range of 7700/7800 .FII sold 794 CE longs and 4.1 K CE were shorted by them .Retail bought 24.2 K CE contracts and 7.4 K CE were shorted by them”

    Does 7.2 lakh indicates market value of traded contract ?
    Bcas does not matches with number of contract 794+4100+24200+74000 am I missing some thing ?

    Reply
  4. The D

    Naveen: Before learning lessons on SL, One should learn to hedge. 7750 CE should have been offset by 2 lots of 7750 PE (Straddle).. or entered a lower put (strangle). However based on your current position I would recommend buying 2 lots of 7400 PE (CMP 41) and 1 more lot of 7750 CE and THEN hold till Apr 22 or till profitable. You will be able to either exit the overall trade in profit, or at least minimize your existing loss. Markets are uncertain, to begin with avoid options whenever possible. All the best. Regards,
    The D..

    Reply
  5. Harshad

    In my view options should not be traded necked. Most negative part in option buying is the time decay.

    Reply
    1. RAJMOHAN

      U R RIGHT / AVOID NAKED OPTIONS / THINK OPPOSITE – MOST POSITIVE PART IN OPTION SELLING IS TIME DECAY

      Reply
  6. Naveen

    Sir,its not the place that type of query there but i am beginner and learnt lession of stop loss.
    Sir ,i bought nifty 2 lot CE 7750 @100 .
    Now premium rate is 34 rupees. Expiry 28 apr 16. Is there any time to minimize my loss. Or sell on monday or hold?
    Thanks

    Reply
    1. Bramesh Post author

      Please tell me Delta,Gamma, theta and vega when you took this trade. Did you had a plan when u took the trade.

      Reply
    2. Agya

      Hi Naveen,
      U should not avg it rather u should exit or short futures now… It will protect u from losing money. I think market is abt to fall. So, I wont advice u to hold naked call. Either u short futures or short 7800 calls to minimise loses.
      Thanks
      Agya

      Reply

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