Nifty 50 IndexShort
Trade Log NIFTY May 14
About Trades today:
1. I sold 9600 CALLS intended to expire. Since market opened gap down, I did not sell PUTS.
2. Opening range of 15 Mins was broken , but could not sustain, hence I enetred the trade sell 9300 CALL intended to covered on touch other end of the range.
3. On touch of range , 9200 PUT of next week expiry was entered , but it was lacking strength, and sold before 1.30
4. When the range broke down, I sold 9200 CALL of next week expiry and closed the position around EOD.
In my notes yesterday
I had said,
1. Somewhere market players are doing the maths and estimating that the impact of stimulus in the short term is minimal. Otherwise the range breakout would have been sustained.
2. The series of FM conferences will create some sector specific action, but overall stimulus bounce is behind us.
3. Since we are on the top bound of the range, the obvious bias is to again short till we breakout the range, that is close above 9450.
It turned out to be true. NIFTY actually swung back near to the other end of the range.
I have the following observations about today's price action
1. NIFTY gap down near support area 9200, but after initial bounce, it did not show any buying.
2. VIX fell 1.68%
3. Advance Decline ratio is very weak 40:10
4. BANK NIFTY under performed . It fell -2.88%. It also just filled the gap, did not fell further like NIFTY, so overall, it has better performance if we combine yesterdays move.
5. Tech sector weakened today based on US news flow.
All this means
1. NIFTY is again in the lower bound of the range, It is likely to go below 9130 and then down to earlier lows around 8800.
2. This fall may not be steep or with momentum. It can be another range bound movement in 9350 - 8800 area.
1. I sold 9600 CALLS intended to expire. Since market opened gap down, I did not sell PUTS.
2. Opening range of 15 Mins was broken , but could not sustain, hence I enetred the trade sell 9300 CALL intended to covered on touch other end of the range.
3. On touch of range , 9200 PUT of next week expiry was entered , but it was lacking strength, and sold before 1.30
4. When the range broke down, I sold 9200 CALL of next week expiry and closed the position around EOD.
In my notes yesterday
I had said,
1. Somewhere market players are doing the maths and estimating that the impact of stimulus in the short term is minimal. Otherwise the range breakout would have been sustained.
2. The series of FM conferences will create some sector specific action, but overall stimulus bounce is behind us.
3. Since we are on the top bound of the range, the obvious bias is to again short till we breakout the range, that is close above 9450.
It turned out to be true. NIFTY actually swung back near to the other end of the range.
I have the following observations about today's price action
1. NIFTY gap down near support area 9200, but after initial bounce, it did not show any buying.
2. VIX fell 1.68%
3. Advance Decline ratio is very weak 40:10
4. BANK NIFTY under performed . It fell -2.88%. It also just filled the gap, did not fell further like NIFTY, so overall, it has better performance if we combine yesterdays move.
5. Tech sector weakened today based on US news flow.
All this means
1. NIFTY is again in the lower bound of the range, It is likely to go below 9130 and then down to earlier lows around 8800.
2. This fall may not be steep or with momentum. It can be another range bound movement in 9350 - 8800 area.
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