Nifty Option Strategy

Target Achieved ! Once again !

Today Nifty was unpredictable but finally stayed below the resistance levels of 3100 after breaching the first resistance level of 2980.

Check out the old technical article on Nifty

Nifty Option Strategy

Today I just unwound the stratgey mentioned earlier in my blog: Nifty Back in Action

The analysis was about resistance level of 2980 on the Nifty. The March 3000 calls were as cheap as Rs. 5 when the strategy was posted. I was holding March calls with strike 3000 and 3050.

Today after the market was looking like not holding up the 3000 level I liquidated my position. 3000 call at Rs. 45.9 and the 3050 call at Rs. 14.3. At the end of the trading session the 3000 call had gone down to 15 rs. and the 3050 call to 8 Rs. Luckily was able to sell the 3000 call at intraday high but missed out the 23 Rs. level on the 3050 call (I had placed the limit order at 25)

  

Nifty back in action !

Nifty has gained back the early losses made earlier in the beginning of the month. Opening strongly today morning with close to 3% gain it is inching closer to the resistance levels seen earlier this year.


The first resistance to be tested will be around 2980 and after breaking this level Nifty to pounce towards the next resistance level of 3100. With the global trend it seems that the Nifty will reach 3000 levels within the end of the week.

Something like the 3000 near month call (Mar) looks like an ideal trade with premiums around Rs. 4. Again expecting the market to move close to 200 pts more this week (4 days) seems too much to ask but it seems like a good bet to take given the risk is only 4 Rupees of premium.

Pantaloon heading to 500

In the early trades of today Pantaloon has broken the Previous resistance level of Rs. 440-445. The Stock in the intraday look strong is gaining pace rapidly. It has also broken another resistance level at Rs. 450. The share if closes today above Rs. 450 for today then it will surely race towards Rs. 500 in the coming week.



Look at the second graph which shows the resistance level at 500. It should be noted that since long term data on the share is not available proper technical analysis cannot be done. Only last six month data is available because of new listing. My recommendation to risk takers would be buy the share and keep it for next week to book a profit of Rs. 50. On the other hand people who already own the share and want to sell the share and book their profit can do so even at this level, because at this level it is very likely that the share will swing Rs. 50 plus/minus.

Pantaloon: Technical

For the past two months Pantaloon is showing a declining trend. It is showing movements against the movement of index like Nifty. According to the technical chart below of six month period there is a resistance level created by the two peaks created. This resistance level is graphically shown with a red horizontal line at around 440-445 level. This level seems very crucial for the stock. Yesterday the price closed right at Rs. 445 and today also when the market has not shown much movement after the initial gains, pantaloon has only moved around this critical level of Rs. 440 to Rs. 445.


Click to view the Chart in Detail

Friday would be a crucial day and if the stock crosses the resistance level with good volume and closes well above Rs. 450 then technically the stock should start an upward trend and price could reach as high as Rs. 500. On contrary if the share fails to close above this level or even worse falls significantly then further correction in prices seem very likely, below Rs. 400. Earlier the stock had broken the resistance level with but soon could not hold on to the gains, the volumes have also fallen which is a negative sign. Look at the large white candle stick (bar at the end).