The market maintained its steady flow upwards and the trend is still very much up....Refer to the chart posted in the previous article, Nifty has managed to stay above the previous congestion zone of 5100-5150 and is facing a slight resistance around 5300. As per the weekly closing chart, there is a minor hurdle around 5300. But there is no signs of breaking down right now.
In my last post, I had asked to write Feb and Mar OTM puts. They have really performed excellently and the premiums have gone down by 50-80% in the last 7 trading sessions. The way puts have shed their premiums, it shows that there is no immediate downward risk in the system. The mathematical oscillators are in overbought zone but mind that they can continue to remain so for long time periods.....
Another point which I feel by speaking with people around is that they are quite afraid to long the market at this level after missing it around 4950/5000 zone. With every rise, they are offloading whatever positions they had and that is reflected by the daily selling figure of retail clients. Well, this data might not be quite substantial is determining the actual strength but then the way midcaps and small caps have started participation shows that we might just enter into the phase of panic buying.
As per the daily charts, if NF manages to break above 5303 on closing basis, then we might head towards 5400-5500 zone. As of now, I am biased on the long side with trading stop around 5220 which is some 20-30 points below all technical levels. Keep in mind that big operators know the levels market participants watch and they will always bring it down to trigger your stop losses. So put yourself in their shoes and visualize the markets. Maybe that will make you and obviously me more confident. If 5220 breaks, then there might be a 200 point correction till 5050 which will again be an excellent buying zone.....
In my last article, I had also asked to buy in dips as well as rallies and that has proved to be true as of now. Keep selling OTM puts even now and probably one can buy few ATM puts (at the money puts) as hedge against long positions.
Happy Trading !!!
In my last post, I had asked to write Feb and Mar OTM puts. They have really performed excellently and the premiums have gone down by 50-80% in the last 7 trading sessions. The way puts have shed their premiums, it shows that there is no immediate downward risk in the system. The mathematical oscillators are in overbought zone but mind that they can continue to remain so for long time periods.....
Another point which I feel by speaking with people around is that they are quite afraid to long the market at this level after missing it around 4950/5000 zone. With every rise, they are offloading whatever positions they had and that is reflected by the daily selling figure of retail clients. Well, this data might not be quite substantial is determining the actual strength but then the way midcaps and small caps have started participation shows that we might just enter into the phase of panic buying.
As per the daily charts, if NF manages to break above 5303 on closing basis, then we might head towards 5400-5500 zone. As of now, I am biased on the long side with trading stop around 5220 which is some 20-30 points below all technical levels. Keep in mind that big operators know the levels market participants watch and they will always bring it down to trigger your stop losses. So put yourself in their shoes and visualize the markets. Maybe that will make you and obviously me more confident. If 5220 breaks, then there might be a 200 point correction till 5050 which will again be an excellent buying zone.....
In my last article, I had also asked to buy in dips as well as rallies and that has proved to be true as of now. Keep selling OTM puts even now and probably one can buy few ATM puts (at the money puts) as hedge against long positions.
Happy Trading !!!
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