- FII’s sold 15.3 K contract of Index Future worth 897 cores ,6.2 K Long contract were liquidated by FII’s and 9 K short contracts were added by FII’s. Net Open Interest increased by 2.8 K contract, so rise in Nifty market was used by FII’s to exit long and enter shorts in Index futures.Safest place for a ship is the harbour but it was never built to stay there….
- As we have been discussing Support is near 7546-7519 range and resistance around 7582/7684 so market can swing in both the levels for sometime before making the next major move. Nifty made low of 7526 and High of 7570 suggesting trading in small range, as this is major demand zone so bulls are fighting hard to hold 7546 on closing basis. Bank Nifty continue to struggles in Gann Arc,EOD Analysis
- 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.
- Total Future & Option trading volume was at 1.69 Lakh core with total contract traded at 1.2 lakh , PCR @0.95 also no increase in vix was seen in this fall, Trader’s Resolutions for the New Financial Year 2016-17
- 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
- Nifty Futures Trend Deciding level is 7576 (For Intraday Traders). NF Trend Changer Level (Positional Traders) 7683 How to trade Nifty Futures and Bank Nifty Futures as per Trend Changer Level
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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@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.
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.
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 ?
7.2 Lakh is the total OI across the strike prices.
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,
In my view options should not be traded necked. Most negative part in option buying is the time decay.
U R RIGHT / AVOID NAKED OPTIONS / THINK OPPOSITE – MOST POSITIVE PART IN OPTION SELLING IS TIME DECAY
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?
Add on Tuesday to average
Never avg a losing trade.
Please tell me Delta,Gamma, theta and vega when you took this trade. Did you had a plan when u took the trade.
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.