Navigating Volatility: Positional Strategies for March
Work religiously irrespective of temporary failures, have risk management systems in place
As a seasoned derivatives trader with over a decade of experience, I find myself continuously drawn to the dynamic nature of the market. Inspired by familial ties and fueled by a passion for challenge, my journey into this realm began with humble internships and has evolved into a successful career within reputable broking firms. Today, I stand firm in my enthusiasm for derivatives, where each trading session offers renewed excitement and abundant opportunities for growth.
Futures and options are highly volatile so one should not assume that they know everything from day one. My journey has seen a fair amount of ups and downs, but it has all been a great learning experience at the end of the day.
The most important thing is that I have been willing to learn something new every day. I also make sure to have risk management systems in place before taking a position. This makes losses bearable and the victories more joyous.
Advice to women who want financial freedom and are very excited to enter the derivative field?
Continue working your way religiously irrespective of temporary failures. Maintain discipline and do a lot of preparation before entering the markets. Learn to embrace the fact that one bad day or one wrong trade does not define the rest of the year, if you have been disciplined.
Expect the Nifty 50 climbing above 23,000 in March after reading options data?
As per my analysis, I was looking at Nifty targets till 22,500 – 22,800 first. Any further correction or upside will be re-evaluated then.
Top two positional bets for March and why?
Since volatility is at its peak now, a good balance approach is important. Hence, my first pick would be as a defence play:
Nifty or Bank Nifty strategy for next week?
FIIs net long position as on date is at 40 percent, which is quite steady. If it crosses 45 percent, then a strong short covering rally can come which will propel markets to a new highs and Nifty can test 23,000.
Bank Nifty is also on a strong momentum and can move towards 49,500/50,000 zones from here. We have been recommending largecap private banks and PSUs to our clients on a regular basis, and I still feel Axis Bank and SBI can see further meaningful upside from here in the March series.
The other sectors participating strongly now are chemicals, FMCG, technology, energy. So, I retain my view to go long in Tata Power, Reliance Industries, SRF, GNFC, Infosys, and Birlasoft.
For option traders, Bull Call spread on Nifty monthly expiry with 22,500 CE buy and 23,100 CE sell can be done (do not forget to keep stop losses as per risk appetite).
A Bull Call spread comprises buying one Call option with a lower strike price and simultaneously selling a Call option with a higher strike price.
Risk Management:
Stop Loss: Implementing a stop-loss strategy to mitigate potential losses in case of adverse market movements.
Position Sizing: Adhering to proper position sizing principles to ensure risk is managed effectively and in line with overall portfolio objectives.
Conclusion:
In conclusion, my journey into derivatives has been marked by challenges, opportunities, and unwavering passion. As I continue to navigate the intricacies of this dynamic realm, I remain committed to embracing the unpredictability of each trading day, knowing that therein lies the potential for continued success and growth.
Disclaimer: This trade idea is for educational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
As a seasoned derivatives trader with over a decade of experience, I find myself continuously drawn to the dynamic nature of the market. Inspired by familial ties and fueled by a passion for challenge, my journey into this realm began with humble internships and has evolved into a successful career within reputable broking firms. Today, I stand firm in my enthusiasm for derivatives, where each trading session offers renewed excitement and abundant opportunities for growth.
Futures and options are highly volatile so one should not assume that they know everything from day one. My journey has seen a fair amount of ups and downs, but it has all been a great learning experience at the end of the day.
The most important thing is that I have been willing to learn something new every day. I also make sure to have risk management systems in place before taking a position. This makes losses bearable and the victories more joyous.
Advice to women who want financial freedom and are very excited to enter the derivative field?
Continue working your way religiously irrespective of temporary failures. Maintain discipline and do a lot of preparation before entering the markets. Learn to embrace the fact that one bad day or one wrong trade does not define the rest of the year, if you have been disciplined.
Expect the Nifty 50 climbing above 23,000 in March after reading options data?
As per my analysis, I was looking at Nifty targets till 22,500 – 22,800 first. Any further correction or upside will be re-evaluated then.
Top two positional bets for March and why?
Since volatility is at its peak now, a good balance approach is important. Hence, my first pick would be as a defence play:
- Buy Dabur India with a support at Rs 525-520 zones and look for upside targets till Rs 585/600.
- Buy Glenmark Pharma with a support of Rs 920 and target of Rs 1,020/1,035.
Nifty or Bank Nifty strategy for next week?
FIIs net long position as on date is at 40 percent, which is quite steady. If it crosses 45 percent, then a strong short covering rally can come which will propel markets to a new highs and Nifty can test 23,000.
Bank Nifty is also on a strong momentum and can move towards 49,500/50,000 zones from here. We have been recommending largecap private banks and PSUs to our clients on a regular basis, and I still feel Axis Bank and SBI can see further meaningful upside from here in the March series.
The other sectors participating strongly now are chemicals, FMCG, technology, energy. So, I retain my view to go long in Tata Power, Reliance Industries, SRF, GNFC, Infosys, and Birlasoft.
For option traders, Bull Call spread on Nifty monthly expiry with 22,500 CE buy and 23,100 CE sell can be done (do not forget to keep stop losses as per risk appetite).
A Bull Call spread comprises buying one Call option with a lower strike price and simultaneously selling a Call option with a higher strike price.
Risk Management:
Stop Loss: Implementing a stop-loss strategy to mitigate potential losses in case of adverse market movements.
Position Sizing: Adhering to proper position sizing principles to ensure risk is managed effectively and in line with overall portfolio objectives.
Conclusion:
In conclusion, my journey into derivatives has been marked by challenges, opportunities, and unwavering passion. As I continue to navigate the intricacies of this dynamic realm, I remain committed to embracing the unpredictability of each trading day, knowing that therein lies the potential for continued success and growth.
Disclaimer: This trade idea is for educational purposes only and should not be construed as financial advice. Traders should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
Disclaimer
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