May attempt 5160 if 5116 Pivot holds.
There is +ve div in 5-minute charts.
If Nifty can go above 5116(Pivot) and trade above 5120-5125, some upsides to 5135-5145 possible.
Staying below 5116, will drag it down.
Thursday, December 10, 2009
Retracement strategy, a must for traders.
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
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I 'll always be there for you. To make you feel that you're secured. And even if the rain is pouring hard and the sky is almost dark... -
5010-5039 supply zone proved a ST resistance. 5002 proved a break down point. 4945 to 4982 proved a corrective rise, monitored with an ... -
Trading strategy that works wonders besides the supports & Resistance is " Retracement strategy ": The strategy that has wor...
47 comments:
hi ilango sir
kindly enable us a shout box from the link below
http://www.freeshoutbox.net/
Hi..Aathithya,
I do not wish to give "Live market" calls. And I am not available all the time.
But would like to share my thoughts to educate my readers.
The Pre-Market Views with levels as well as certain education materials in the blog should enable traders to act when they should.
Whenever I am confident of a major reversal, it appears in the EOD analysis or Premarket.
I share all I know without any "holding back" with everyone here.
But actual trading should be done by the individuals. In this regard, my endeavour is to impart knowledge & technical input to make them confident.
Best regards.
ilango
Hi Ilango,
I appreciate your efforts, patience and sincerity. Also focus and commitment to yourself. I observed lot of time number of people ask you same questions (ofcourse unknowingly). But without fail and losing your cool, you answer them so calmly and focus on your this ongoing great work.
Hats off to you.
regards
One more person with sincere appreciation for your efforts/time and consistency without any ulterior motive.
Please keep the good work going.
God Bless you.
Warm regards,
S Rajagopal
Yes lakshmi. You are right. Calls are correct or not its different thing. But taking time and answering each question .. its really very very nice
Ilango Sir please keep your blog as it is.Shout boxes and various other such ideas are just tools which will help traders like us copy your trades or ideas, however the learning will stop there.
Just to let you know sir, I have gone through an entire course in technical analysis with none other than Ashwani Gujral but apart from learning a few chart patterns and some money management techniques have never really understood how to implement my learnings in real time trading,be it Swing or Intra day. However the few days that i have spent on your blog have proved immensely useful and have instilled some amount of confidence and reasoning to my trades.
Please do not stop the good work sir.You are a good trader but you are a fantastic teacher.
Keep a Sl @ 5075 and reverse to Longs.
The positive divergence in 5-minute chart is helping and Asian mkts are into green.
Sir I also really apreciate your work.
The better part is U learn teach US how to trade rather giving a readymade stuff.
Really thx alot for all your kind help
Looks like I was right. Booking 30 pt profit now. Got in at 5092 with 5080 SL and got out at 5122
Good going KKR.
That is a chunky 30 points.
I always think about the "Street vendors" who make a living out of a small capital with so much uncertainties and hardships. And I consider the responsible traders as the "Most blessed ones".
There are many who have no such opportunities. We should consider ourselves quite lucky and contribute to those who work hard but wanting an opportunity.
Thanks Illango for your kind words as well as taking the time to chat with us.
As stated earlier this morning, I also have a short straddle with strike price of 5200 and 5100 (2:1 ratio) with a net premium of Rs 250 and Rs 240.
Hi..KKR,
I have never done such "Option strategies".
What is the benefit..? And what are the parameters to alter this strategy? Like any contingencies in case price break out of a particular range. Do you exit any options, then..?
very noble thoughts ilango sir...your commitment in teaching us is incomparable...thanks
ABOVE 5140, it will be a break out in the hourly channel.It then could go to the big resistance of 5161.
A close above 5122 at 1.00PM will give some momentum.
Reminder: Nifty is still within the trading range. Above 5182NS will change that.
Ilango sir and blog freinds thank u all for ur wonderful inputs any sites for live european markets?
Will be back @ 1.30PM.
And thank you guys for keeping me on my toes.
Hi Jayshah,
This is the actual trades at Europe, US & Asia.
http://www.igmarkets.co.uk/
sir can we go for short @ 5140 with a sl @5161??
Do u think is it worth taking risk??
i was holding long @ 5095 and took exit @ 5140
Dear Jai
You can watch
http://www.igmarkets.co.uk/
Regards
Mani
Hi Nano
This could be a trap to invite shorts.I have also booked profits at 5140 just like but not going short instead waiting for it come down to go long again.
MACD, RSI all indicators bullish as per intra chart
Cheers
Akhil
Thanks Ilango sir and freinds once again .May God bless all.
thank you akhil but nifty OB in intra chart and finding some resis @5145-50 lvls
i booked 15 pts (short @5140 n exit @ 5125), an aggressive trade
Mano
Nice one...May all friends has lot of profit here..:)
Don't forgot to click on adv. everytime we visit this blog.
Cheers
Akhil
Illango, in a trendless market a short strangle is reasonably safe - assuming there is no WILD gap up/down like May 18
A short 5200 strangle with a net credit of Rs 250 gives me protection till (5200 - 250 =) 4950 on the down side and protection uptill (5200 + 250) = 5450 on the upside.
Since I am expecting Nifty to trade within 4950-5450 till Dec 31, I am willing to take up this gamble.
The risk is huge if Nifty trades outside this range of 4950-5450. So as a precautionary measure, I have a SL of 5040-5050 for the put option and a SL of 5190-5200 for the call option. So a break down below 5050 will become a directional short trade and a break out above 5190 will become a directional long trade. A simpler strategy would be to keep a SL of Rs 3000 or so and trade the straddle.
My initial investment for writing 1 lot of the 5200 call and put at 11% Nifty margin = Rs 5100 * 100 * 11% = Rs 56,000. I have receieved a premium of Rs 250 * 50 = Rs 12,500. Therefore my Net investment for 1 LOT is Rs 56,000 - Rs 12,500 = Rs 43,500
Now what is the profit potential from this trade ? I expect to take a profit of 50% of the net premium (due to time decay) = 50% of Rs 12,500 = Rs 6250.
Profit % = Profit/investment Amt = Rs 6250/Rs 43,500 = 14.36%
short in Jan NF @4150 and bought 5300 CA Dec @48
Looks like more than technical Indian market is inching up on hope that europe will rebound strongly.
Lets see what happens.
how to check realtime PCR ilango sir?
What Is India’s Biggest Bubble?
visit below link
http://www.blog.happionaire.com/
Regards
Amit
This is the link from one of the blogger
http://www.chartreader.co.in/2009/05/real-time-put-call-ratio-pcr-for-nifty.html
regards
thx shikhartimby :)
Hi Ilango
If possible for you, could you post Daily & Weekly chart along with wave markings on Hind Oil Exploration(HOEC).
Regards
Amit
Sir,Market Still looks like on a slipery note.It may touch even 5191 but still not sure whether it will hold there or stay there up to closing.your coment Pl.
Sir,
Is this prcarious journey to just stay above 5090?and conveying a false message of so called consolidation?
is there a way to find out whether options were written or bought at a particular strike...nse site gives only the OI count
Hi..Amit,
I do not follow HOEC and hence no data. I will see tonight, if I can get it.
Hi..Mynac,
To put it in proper perspective, Nifty after correcting from 5182(Post Diwali) to 4539, moved up very sharply to 5181. A sharp move is generally gets corrected with time correction, hence this sideways trading range(If this is indeed an upmove from 4539).
Ta seem to be turning up again.
An "abc" correction over with 5181-5052-5152-5084(today)
An alternatrive scenario is...a=5181 to 5052; b=5052 to 5146; c= from 5146 is on from today...may head to 5080-5050 again and then move up.
Make your trading plan accordingly.
Dear shaq
Increase in OI means fresh options have been written, otherwise every buy has to match a sell.
Regards.
Shaq,
A simple rule to decipher "Option writing or Buying" is:
If, say a 5100CE, adds OI and Nifty moves down, then Call Options are being written and vice versa. Basic idea is "Strong money moves the prices"
Optional: Exit Longs if Nifty closes below 5135.
Thanks r m and Ilango sir...If 5100 CE adds OI and nifty moves down ,you said Call options are being written .Why is that.Is it because that since more calls at 5100 are opened but nifty was pushed down..indicating that nifty at higher levels was rejected since call writers want to keep their premium..
Hi Shaq
Another simple example could be.
In current month its said 4900 is a support and 5200 is a resitance whats the basis of this.
It based on these two options OI.So lot of Put writing at 4900 level has been done and lot of call writing at 5200 level has been done.
A rising OI with declining prices is always bearish.
A rising OI with rising prices is always bullish.
but that OI has to be more then 10% to take its effect normally.
Cheers
Akhil
ilango sir,
I have a small google group where daily/weekly/special brokerage(multiple) house views and other reports are published. If anyone want to join please join and praticipate in making a excellent group.
http://groups.google.com/group/nifty_traders
One can use his/her gmail address.
Please delete if you think I am doing any kind of promotion.
thnx
Hi..Prosenjit,
"Sharing information & Knowledge" is always welcome. Individuals should know how much info..they want to digest for the purpose they are seeking.
All the best to the "Nifty Traders" group.
Dear Ilango Sir,
I feel I have attended a special course in Options trading. Thankyou KKR for explaining the short strangle strategy. It was very informative. It would be useful if you could kindly explain the longstraddle strategy.
ilango sir thank you.
HELLO EVERYBODY, HAVE A NICE TRADING
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