May22-W4: Nifty to consolidate for a breakdown later?
What I said last week was that the market should not be able to break support band of 15500 easily. Nifty has not even reached that level and is finding support around 15750 itself. Now the following is my analysis for coming week:
Consolidation cannot be avoided this week. Nifty does not have enough bullish momentum. At the same time, breaking 15750 requires a solid breakdown. For that to happen, there needs to be a build-up of energy in form of consolidation .
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
Scenario Anticipated Price Action
Consolidation - Between 16600 and 15950
Downtrend - If breach below 15950; to drop somewhere till 15300
Uptrend - If breach above 16600; to rise somewhere till 17125
It is surprising that global OMCs made profit while our Indian OMCs made losses. This is when I thought a lot of price inflation was passed down to consumers. This goes to show that the taxation on oil products is simply too much.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
Consolidation cannot be avoided this week. Nifty does not have enough bullish momentum. At the same time, breaking 15750 requires a solid breakdown. For that to happen, there needs to be a build-up of energy in form of consolidation .
Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…
Scenario Anticipated Price Action
Consolidation - Between 16600 and 15950
Downtrend - If breach below 15950; to drop somewhere till 15300
Uptrend - If breach above 16600; to rise somewhere till 17125
It is surprising that global OMCs made profit while our Indian OMCs made losses. This is when I thought a lot of price inflation was passed down to consumers. This goes to show that the taxation on oil products is simply too much.
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
Trade fermée manuellement:
This was a week where Nifty ended almost where it started from. Such scenarios work awesomely for strangle selling. The whole week was smooth except for May 18th. I had a strike of 16450 CE which started giving trouble since Nifty was at 16400.
I was able to neutralize the damage by selling equivalent number lots of 16500 CE. I was very unsure of the market direction at that time. Though I had a feeling that Nifty may go down and there was no need to book loss on 16450 CE but it was only a feeling and nothing else. So I booked it. I have become a bit ok at booking favorable losses. This is good, even though it means that I could have earned another Rs. 24,000
Net Profit (after deducting brokerage) = Rs. 40,704.19
Capital deployed (approx) = Rs. 16,31,886
Week’s ROI = 2.49%
Total no. of weeks traded till today = 6
Average weekly return till today = 2.09%
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
I was able to neutralize the damage by selling equivalent number lots of 16500 CE. I was very unsure of the market direction at that time. Though I had a feeling that Nifty may go down and there was no need to book loss on 16450 CE but it was only a feeling and nothing else. So I booked it. I have become a bit ok at booking favorable losses. This is good, even though it means that I could have earned another Rs. 24,000
Net Profit (after deducting brokerage) = Rs. 40,704.19
Capital deployed (approx) = Rs. 16,31,886
Week’s ROI = 2.49%
Total no. of weeks traded till today = 6
Average weekly return till today = 2.09%
DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.
