Friday, July 12, 2013

Nifty makes a "Hanging man" @ the Triangle target zone.

Hanging man candle gets invalidated when the prices move past the highs of the hanging man.
Hanging man requires a follow up price action as shown in the links.
A move past the highs would imply that it was a runaway gap candle absorbing all the selling pressure of "Intraday".
"5970" has been conquered decisively after a brief tussle during intraday; HEmas offered the needed support.


Sanjay Jaiswal said...

Dear Friends,

I just wanted to take a moment and say 'Thank You' to everyone for all of the birthday wishes. It means a lot to me that you all took the time from your busy lives to wish me a happy birthday, and I feel very blessed to have each and every one of you as my friend...

Thanks & Regards

Sanjay Jaiswal

Rajib said...

Better late than never ...

Wishing a birthday with lot of Open Interests ... Dear Sanjay ... :)

Bullish Cartel said...

Day in, Day out fantastic analysis ilangoji, cheers!

Adrian Jose said...

I would like to express my sincerest gratitude to … ... Ilango Sir,
from your guidance, great kindness and patience and
I wish to say a heartfelt thank you.

venkatapathy l said...

May IIP at -1.6% vs 1.9% MoM
Manufacturing growth at -2% vs 2.8%
Mining at -5.7% vs -3%
Capital goods at -2.7% vs 1%
June CPI inflation at 9.87% vs 9.31%


venkatapathy l said...

Source: Money control

Pradeep said...

Hi Ilango,
I want want to share my today failure trade.some good and bad news of infosys, I take 2700 CE @ 2400 PE yesterday @ 3.20 PM, Hoping for good 50-100 % profit and today I lost my 50% capital .
This is purely aggressive trade which was i kept behind from last 9 trading days and with taking in account SAR rules earn 90% profit.

Kumar said...



The following link which will direct you to soothe your mind.

Chidanand Roopa Shivoham Shivoham


Yogesh said...

@ Pradeep, I think volatility factor caused you damage, rendering your hedging useless. when price demanded is unreasonably excess, instead of Long, Sell both options, next day drop in volatility will give you net profit.

raman said...

The danger in having a sell in both call and put at same strike price or any other price is that huge loss is possible when the movement in any one direction is so steep that it absorbs the hedge on the other option.

Dinesh Rishi said...

Options are WOMD

but "Long straddle" on result/major event day can be fruitful

rajiv malik said...

how will the following information given by venkatapathy l affect the market on monday-

May IIP at -1.6% vs 1.9% MoM
Manufacturing growth at -2% vs 2.8%
Mining at -5.7% vs -3%
Capital goods at -2.7% vs 1%
June CPI inflation at 9.87% vs 9.31%

Dinesh Rishi said...

My best trade

Dinesh Rishi said...

Rajiv Malik Sir,

ST is up a gap down if comes will be buy opportunity after buy signal.

Angrej celebrating All time highs............

rajiv malik said...

dinesh ji,

a gap down not only will be a buy opportunity, would be a good exit opportunity for many who shorted at the top today.

btw i like the following comments of
Devendra Chaturvedi on facebook-
3 idea of bears.........
if market falls.......they create fuss of "trend is very clear"
if market rally.......anything goes up has to come down.
if it makes time pass.......finally it will come down after this distribution. market will fall sometime for sure........everyone claims that he is neither bull nor bear......finally,every one remains either of them challenge to prove it otherwise.

navtash said...



Kumar said...

@ Dinesh Rishi,

Thanks to share the information on Options straddle.

Ding A Dong said...

Dear trading friends,

This time INFY option writers took buyers on ride by en-cashing huge demand arrived based on previous stock movements at results and guidelines.
Entering "Strangle" or "Straddle" are usually beneficial but analyzing cost based on the premium is must.
This time its was very different situation as
-INFY moved only 10% (earlier it was more)
-Options premiums were too high

Based on above facts the present situation is-
1. 2500 Straddle was at 350 EOD 11th now its 310 12th EOD loss of 10%
2. Strangles are more pathetic with loss of 50% to 60%
3. Protective Puts- profits 15000 ( for this you should know the direction which is difficult to get at events while this is because call went right if not this could have been given you a loss of 17215)
4. protective calls- Loss of 19250

So how any one can trade this is event!
the only problem was high premium in all cases.
Have a tab on amount or % of Premium you pay before you get it these kind of strategies.
Writing options just based on these kind simple data/situations are BIG NO for novice.


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