Sunday, November 15, 2015

Relief Rally?- NIFTY View For Week 16-20 Nov

In this newsletter read about my view on Nifty & how my current trade in Banknifty is currently making a profit of 4.2% 

It was red everywhere during the week gone by. Nifty is not able to sustain the gains. We are in intermediate down-trend. Last week on Monday we had seen after gap down, Nifty rallied almost 130 points intraday. 
Do we expect a relief rally?

 Technical Overview: Last week Nifty made high of 7937 and low of 7730. A range of 207 pointsNifty is trading near earlier higher top at 7690 on daily chart. If we assume Nifty to take support near this higher top, we expect a relief rally. This relief rally is expected to fade sooner or later. 

I assume that Nifty is in intermediate down-trend and can see further downside. However this may not come outright. It means before moving any further down Nifty may see a upward relief rally. This rally can take Nifty to its immediate resistance in 7926-8002 area. This has become a sell on rise market for medium term swing traders.

Apart from the support (Higher Top) as mentioned above, Nifty does not seem to have major support. If this support (7690) is broke we can see Nifty moving down to 7550 area.   
The trade I had suggested in my last newsletter is still on. 

However, today let me discuss a trade on Nifty and Banknifty, I had suggested my paid subscribers in Index Options Portfolio. 

I had suggested Short strangle in Banknifty on 2nd Nov with strike price of 16000 for put and 18500 for call. This pair is still live and currently fetching profit of 4.3% 
I had taken another trade which was Nifty short strangle with srike prices of 7500 for put and 8300 for call on 6th Nov. This pair is currently fetching profit of 3.2% 

Do you trade strangles? If yes how do you choose the strike price? You can comment below, if you are interested in trading a strangle. I may be of some help to you. 

I run trading portfolio in Options for conservative and comparatively safer returns of 3-5% per month. I use hedging strategies as one mentioned above to generate relatively safer returns per month.  Click here to read more about "Index Options" portfolio. Click here for Index Options Performance. 

If you wish to trade in Options for safe returns subscribe here of Index Options Portfolio.  
My another portfolio is for traders who prefer to trade in Futures. I give Swing recommendations for this portfolio. To check this one click here