Nifty: Chart set up for November series and trading strategy
Nifty
- we see Nifty trading above 21 day EMA, 63 day EMA and well above 252 day EMA
- Line of resistance around 18200 odd levels
- Line of Support around 16800
- So is the 200 day EMA support around 16780
Right now we are in the middle of the range
Trading strategy
Given the set up one may consider a Short Strangle strategy for Nifty for November series
Sell 18300 Call option currently around 93
Sell 16500 Put option currently around 79
Net receivables 172 points. Yield potential of approximately 9% on Margin deployed in strategy till 24 Nov 2022.
Loss in strategy if Nifty closes above 18472 or below 16328 on 24 November.
Review points for me, 18030 on the upside and 16800 on the lower side. This would give ample time to exit / adjust in case need be. You decide on your Risk Management part.
Take care & safe trading...!!!
Do Like and Follow for more such trading ideas!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
- we see Nifty trading above 21 day EMA, 63 day EMA and well above 252 day EMA
- Line of resistance around 18200 odd levels
- Line of Support around 16800
- So is the 200 day EMA support around 16780
Right now we are in the middle of the range
Trading strategy
Given the set up one may consider a Short Strangle strategy for Nifty for November series
Sell 18300 Call option currently around 93
Sell 16500 Put option currently around 79
Net receivables 172 points. Yield potential of approximately 9% on Margin deployed in strategy till 24 Nov 2022.
Loss in strategy if Nifty closes above 18472 or below 16328 on 24 November.
Review points for me, 18030 on the upside and 16800 on the lower side. This would give ample time to exit / adjust in case need be. You decide on your Risk Management part.
Take care & safe trading...!!!
Do Like and Follow for more such trading ideas!
Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- I have been wrong in the past and can be wrong again in future too
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
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