Buying options are good during trending times (like from "Mahurat day", when the "top" & "a reversal" was anticipated) as well as during the last 5-8 trading days of the series. "Sentiments" drive the option prices faster than the index at certain key moments and one need to take advantage of such price extremes.
If you have a target price, book out of your options promptly.
"Patience" too play a very vital part in maximising your returns.
Mayur asked about "EW" anamoly in Banking stocks":- I have just posted an elaborate reply with many charts in my "Stock Blog".
http://wealthinnifty.blogspot.com/2009/10/banking-stocks-bogus-last-rise.html
We have broken below a major trendline in a very decisive manner. And presently closed below the likely "5-week ema". The last support visible is around 4900 - 4935.Nifty need to break soon "4935" for a faster retracement to confirm a strong reversal. In the best positive scenario, Nifty may attempt to go between the last two highs <>.
There is some positive divergences in the 5 minute chart which can give a small relief rally. For more sustainable rally, hour charts should develop some positive divergences. Until then more lows will be seen.
From the Pivot table, R1 @ 5042 is a logical resistance if it trades above the Pivot @ 5005.
10 comments:
Dear Ilango,
I am surprised at how accurate you can be, I get busy during the day and would ahve held onto my nifty long at 5099, if it was not for you and not covered at 5060, I am still short on 5100 and 5200, by the time I saw the message on 5,000, had missed the boat. When do I cover my 5100, SL 5050 ? as now both are naked calls short.
I am now holding 30 % position in Bajaj Hindustan with a SL of 215.
Cheers and thank you so much
Kapil
Dear Ilango,
I have positions in Orchid Chemicals, Sintex and Unitech, all 300 shares each or lower, should I start exiting partially or hold as they are medium term positions ?
Cheers
Kapil
Ilango.
I continue to hold 1 lots Oct Series of SBI Short. Advise earlier was to continue till 2275 / 2235.
With expiry next week, please confirm whether I continue to hold the Short and target for levels of 2235 or lower?
Ilango,
yday I bought 1 lot of MNF at 4980. What will advise...shd I come out of it asap today??
Hi..Kapil,
Individual stocks can behave a bit differently but will fall in line with the major index(Nifty) in the end except for those defensive sector such as Pharma, FMCG & may be IT too..
So keep "Orchid"
but book out of Sintex and Unitech but only partially as yours is a medium term holdings..Say 40%.
Bajaj Hindustan- You may get 235 to 245 in this settlement, So hold till next week..
Regarding the sold Calls: Exit the 5200 as the reward ahead is not significant. If you are in priofits , exit 5100 Call too. You can sell them at higher levels later. I will update.
Best regards.
ilango
I was just curious, does it matter if the chart created should be a rectangular or squarer before creating trendlines?
I created the trendline through 3919 and 4353 in my ami. However, it doesnt pierce through yesterday's candle body(though, it is going through the close and low portion of the candle).
Please enlighten.
Hi..Mayur,
Markets are expected to bounce today on the back of world market cues. You may exit SBI short at the open and sell higher, may be by Monday.
Hi..Prabhanshu,
You are the smartest, like my critic...went long at the lows yesterday.
I am expecting Nifty get resisted @ 5065 to 5095. Take your decision on fine tuning it.
50% retracement comes @ 5085.
62% retracement comes @ 5100. These are spot levels.
While I am posting this, "Hang Seng"(Hong Kong Index) is at new highs.
Best regards.
ilango
Thanks Ilango
I will keep that in mind. I am holding SBI short and NIFTY 5000 short. Will exit them at the open. Made a mistake of holding it even when it was at the highs.
Thanks Ilango
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