Trade Log NIFTY August 18
In my post yesterday
I said
With today’s price action nothing changed. I need to see a clear signal to change my view, which is currently bearish consolidation. Tomorrow, if NIFTY resumes, the downtrend again back towards the bottom of the range 11110-11140, it will strengthen the view. Any close above 11320, I need to change my side.
So I changed my side. I am in favour of no trade, why? I’ll explain.
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My trades today
I sold 11250 PUT when NIFTY crossed the initial range high, then closed it at the end of the day.
My Observations for the day
NIFTY was very positive throughout the day. Finally closed with 1.23% high.
BANK NIFTY closed 2.16% up.
VIX down 4.12%
Advance Decline ratio is 39 to 11.
My view
NIFTY is showing very bullish formation on multiple time frames.
On a long term chart - It closed above 11381, which is 78.6% retracement. [Bear market challenge level.]
On weekly time frame - Highest weekly closing since March 2020
In the daily time frame - NIFTY broke out with strong candles. It also formed hammer and confirmation
On hourly time frame - NIFTY It is forming a crooked inverse head and shoulder with target of 11600.
With any rise further, NIFTY will enter the gap zone created on Feb 28,2020. The day panic selling started. I think this zone is a risky zone. NIFTY may experience extreme volatility and levels may not work. As large portfolios may liquidate some positions in the zone.
Also , one thing I learnt on trading is when everything is looking this good it is better to wait and see what happens next.
*************************************************************************************************************************************************************************************************************
My Plan as long as NIFTY is in 11381-11633
I’ll trade intraday with long bias, mostly with buying CALL options or selling PUTS with tight SL.
I’ll work only when NIFTY is out of this range either stays below 11380 or settles above 11630 on a weekly basis.
I won't create any short positions, apart from buying PUTs with limited loss potential.
Be safe out there!
I said
With today’s price action nothing changed. I need to see a clear signal to change my view, which is currently bearish consolidation. Tomorrow, if NIFTY resumes, the downtrend again back towards the bottom of the range 11110-11140, it will strengthen the view. Any close above 11320, I need to change my side.
So I changed my side. I am in favour of no trade, why? I’ll explain.
*************************************************************************************************************************************************************************************************************
My trades today
I sold 11250 PUT when NIFTY crossed the initial range high, then closed it at the end of the day.
My Observations for the day
NIFTY was very positive throughout the day. Finally closed with 1.23% high.
BANK NIFTY closed 2.16% up.
VIX down 4.12%
Advance Decline ratio is 39 to 11.
My view
NIFTY is showing very bullish formation on multiple time frames.
On a long term chart - It closed above 11381, which is 78.6% retracement. [Bear market challenge level.]
On weekly time frame - Highest weekly closing since March 2020
In the daily time frame - NIFTY broke out with strong candles. It also formed hammer and confirmation
On hourly time frame - NIFTY It is forming a crooked inverse head and shoulder with target of 11600.
With any rise further, NIFTY will enter the gap zone created on Feb 28,2020. The day panic selling started. I think this zone is a risky zone. NIFTY may experience extreme volatility and levels may not work. As large portfolios may liquidate some positions in the zone.
Also , one thing I learnt on trading is when everything is looking this good it is better to wait and see what happens next.
*************************************************************************************************************************************************************************************************************
My Plan as long as NIFTY is in 11381-11633
I’ll trade intraday with long bias, mostly with buying CALL options or selling PUTS with tight SL.
I’ll work only when NIFTY is out of this range either stays below 11380 or settles above 11630 on a weekly basis.
I won't create any short positions, apart from buying PUTs with limited loss potential.
Be safe out there!
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