In my Trade log yesterday, I blogged
1. Today was a typical consolidation day. Nothing much to read about for me.
2. IF NIFTY goes below 10020 tomorrow, it has not still found lower boundary of the range.
3. If NIFTY moves fast towards 10280, there could be failure of that bounce in 10300 area.
4. I assume 9900 to 10300 range for tomorrows expiry.
The range was breath taking close , but NIFTY managed to hold above 9900. I am still assuming this move as range formation / consolidation.
My trades today.
1. Very simple trading day today. I sold 10100 CALL when previous day low was taken out, then closed it near end of the day for profit.
My observations for the day
1. NIFTY closed in red, 2.12% below.
2. BANK NIFTY in red as well with 2.72% loss.
3. VIX increased marginally 0.76%
4. Market breadth weak. 668 to 1134 across market and 6 to 44 for NIFTY.
5. Open Interest data shows balance of power between buyers and seller. But 10000-10300 resistance zone further strengthened.
My view for next sessions.
1. I'll continue to assume this is consolidation and any close below 9843 will create doubts in my mind.
2. At the same time, I think, the lower end of the range is close or discovered. And NIFTY now should make attempt again towards 10200.
3. I'll wait to see action on Friday and Monday to see if NIFTY goes and takes out 9800-9843 levels.
Idea for next week.
1. I have created 10200/10000 Credit PUT spread. I was able to create this for 140 Rs Credit today. Idea would be to expect NIFTY chasing back to the upper end of the range.
1. Today was a typical consolidation day. Nothing much to read about for me.
2. IF NIFTY goes below 10020 tomorrow, it has not still found lower boundary of the range.
3. If NIFTY moves fast towards 10280, there could be failure of that bounce in 10300 area.
4. I assume 9900 to 10300 range for tomorrows expiry.
The range was breath taking close , but NIFTY managed to hold above 9900. I am still assuming this move as range formation / consolidation.
My trades today.
1. Very simple trading day today. I sold 10100 CALL when previous day low was taken out, then closed it near end of the day for profit.
My observations for the day
1. NIFTY closed in red, 2.12% below.
2. BANK NIFTY in red as well with 2.72% loss.
3. VIX increased marginally 0.76%
4. Market breadth weak. 668 to 1134 across market and 6 to 44 for NIFTY.
5. Open Interest data shows balance of power between buyers and seller. But 10000-10300 resistance zone further strengthened.
My view for next sessions.
1. I'll continue to assume this is consolidation and any close below 9843 will create doubts in my mind.
2. At the same time, I think, the lower end of the range is close or discovered. And NIFTY now should make attempt again towards 10200.
3. I'll wait to see action on Friday and Monday to see if NIFTY goes and takes out 9800-9843 levels.
Idea for next week.
1. I have created 10200/10000 Credit PUT spread. I was able to create this for 140 Rs Credit today. Idea would be to expect NIFTY chasing back to the upper end of the range.