Sunday, September 27, 2015

Nowhere to go- NIFTY View For Week 29 Sep-2 Oct

Read this report on my website Bonvista Financial Planners

Tomorrow markets shall enter in new F&O series. Immediately on 29th Sep we have RBI meet. Sentiments are mixed on rate hike issues. How to trade Nifty in such scenario.  

Technical Overview: Last week Nifty made high of 8021 and low of 7723 A range of 298 points. Last week's rising spree is broken by "Bearish Harami" on weekly chart. 
The kind of chart that is formed is giving me no indication. It is giving me the feeling of confused sentiments. Larger time-frames (monthly and quarterly) are not giving any indication of markets moving up. The gap which I had mentioned in my newsletter that was sent in first week of Sep is filled. 
Above scenario made me think as below: 
If markets are to break 7539, we shall have next target of 6800 coming on Nifty. If something positive comes out of RBI meet, Nifty can move up to 8200. At this level it has strong resistance. 
For me the trade for next 15-20 days is as below: 
All positions for Oct 15                                              
Sell NIFTY 7300 Put 
 Buy NIFTY 7100 Put 
Sell NIFTY 8200 Call 
Buy NIFTY 8400 Call 

This strategy is called as Iron Condor. Works better with non-directional view. 
One can expect profit to the tune of 3-4% with minimal risk 
For probable (Max) Profit and Loss you can comment on this post or write me at support@bonvista.in 

NIFTY Daily Chart


Read here how my trade made 3.4% in 8 days in Sep15 series in Iron Condor trade.                                                                                                                                                                              
For more precise ideas on Nifty trading follow me on Twitter @Bonvista1