Trade Log NIFTY July 6
In sync with my weekly view posted
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Possibilities next week
1) BANK NIFTY starts performing in coming two sessions very strongly and NIFTY rushes to 10800-10900 levels. VIX further drops around 22-23 levels.
2) NIFTY fizzles out the rally and drops back or consolidates.
Now for trading action, I do not think this is a good enough reading. Hence I wait. I wait patiently till I get some confirmation
1. If I see BANK NIFTY >> NIFTY and VIX dropping, I participate using intra day positions mostly buying options. I’ll avoid it if there are opening gaps.
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Now possibility 1 played out. And I did action 1.
My trades today
1. I bought a 10700 CALL option which was squared off at the first sign of weakness.
My observations for the day
NIFTY gained 1.47% ~ 5th straight day of higher high daily.
BANK NIFTY gained 1.59%. But did not cross earlier high.
VIX dropped to 25
Advance Decline ratio is 40 to 10.
Option data showing room market participants expect on upside.
My view for tomorrow
Strong momentum day in trending market. If there is some consolidation tomorrow below today’s high, it is actually a good sign in favour of continuing positive momentum for 11000.
If NIFTY rallies to make new high again towards 11000, it is very possible that it is near intermediate top. In that case it is better to trade strictly on very short targets. Better to stay out.
***************
Possibilities next week
1) BANK NIFTY starts performing in coming two sessions very strongly and NIFTY rushes to 10800-10900 levels. VIX further drops around 22-23 levels.
2) NIFTY fizzles out the rally and drops back or consolidates.
Now for trading action, I do not think this is a good enough reading. Hence I wait. I wait patiently till I get some confirmation
1. If I see BANK NIFTY >> NIFTY and VIX dropping, I participate using intra day positions mostly buying options. I’ll avoid it if there are opening gaps.
***************
Now possibility 1 played out. And I did action 1.
My trades today
1. I bought a 10700 CALL option which was squared off at the first sign of weakness.
My observations for the day
NIFTY gained 1.47% ~ 5th straight day of higher high daily.
BANK NIFTY gained 1.59%. But did not cross earlier high.
VIX dropped to 25
Advance Decline ratio is 40 to 10.
Option data showing room market participants expect on upside.
My view for tomorrow
Strong momentum day in trending market. If there is some consolidation tomorrow below today’s high, it is actually a good sign in favour of continuing positive momentum for 11000.
If NIFTY rallies to make new high again towards 11000, it is very possible that it is near intermediate top. In that case it is better to trade strictly on very short targets. Better to stay out.
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