Current Trading Strategy on NIFTY Spot @ 6017.70 on 29 Oct 2010

NIFTY Spot from 18 Oct 2010 to 29 Oct 2010

If we see the two weeks of trading session from 18 Oct 2010 to 29 Oct 2010. It is clearly indicates that Market is under very high level of volatility. On 20 Oct 2010 NIFTY Spot was 5982.10, on 25 Oct 2010 it was 6105.80 and lastly on 28 Oct 2010 it was again 5987.7 which was the level of 20 Oct 2010.

So we can take following trading strategy in NIFTY options :-


Long Strangle

means BUY *OTM Call + Buy *OTM Put


OTM - Out -of-the money

Buy NIFTY 6200 Call @ Rs.61 or between Rs. 40 to Rs. 60(according to your risk level) + Buy NIFTY 5900 Put @ Rs.77 or between Rs. 60 to Rs. 80(according to your risk level)

Note: This trading call is Nov expiry point of view. If you gain more that 25% to 30 % profit then booked it.

Status of Trading Call Collar generated on 21 Oct 2010

Profit in Buy NIFTY 6100 Put Nov expiry recommended @ 128.10 and  Short NIFTY 6400 Call Nov expiry @ 64.25 on 21 Oct 2010.


Buy NIFTY 6100 Put @ Rs. 128.10
Today on 29 Oct 2010 High Rs. 205
Profit = 205 - 128.10 = +76.9 points per lot or Rs. 3845 (50*76.9 points) per lot


Short NIFTY 6400 Call @ Rs.62.45
Today on 29 Oct 2010 Low Rs.12.15
Profit = 62.45 - 12.15 = +50.30 points per lot or Rs. 2515 (50*50.30 points) per lot


Buy NIFTY Nov Fut @ 6158.95 
Stop Loss Triggered in it 
Loss = 6158.95 - 6044 = -114.95 points or Rs. -5747 (50*114.95 points) per lot


Total Profit = 3845 + 2515 - 5747 =  Rs. 613(Profit)

Stop Loss Triggered in NIFTY Nov Fut Buy Call @ 6120 - 6170 on 21 Oct 2010

NIFTY Spot From 25 Oct 2010 to 29 Oct 2010 

From 25 Oct 2010 to 29 Oct 2010 NIFTY Spot corrected by (6150.30 - 5943.30) more than -200. and NIFTY Nov Fut corrected by (6206 - 5966.25) more than -230 points. Stop Loss Triggered in NIFTY Nov Buy Call @ 6120 - 6170 on 21 Oct 2010. NIFTY support was 5946 from expiry point of view and 5963 from trading point of view suggested on 18 Oct 2010. Both the support has broken by NIFTY Spot and today low was 5937.10.


All the indication indicates that market is going into moderately bearish term and NIFTY spot will be in the trading range from 5930 to 6150. So be cautious in NIFTY while taking any position. Further RBI is thinking on huge inflow of dollars by FII which will impact on inflation and interest rate in the economy so in its Credit Policy RBI can take any major decision regarding this.

OPTION TRADING STRATEGIES ACCORDING TO RISK & RETURN

Following Option Trading Strategies are to be used according to their Risk & Return Basis :-

ITM :- In -the- money 

OTM :- Out of -the- money 

ATM :- At -the- money

OPTION TRADING STRATEGIES ACCORDING TO MARKET CONDITION

Following Option Trading Strategies are to be used according different market condition :-

ITM :- In -the- money 

OTM :- Out of -the- money 

ATM :- At -the- money

Tracking Trading Call Given in NIFTY Nov Fut @ 6158.95 on 21 Oct 2010

NIFTY Spot on 25 Oct 2010

NIFTY Spot 5 days Chart

Today 25 Oct 2010 NIFTY Nov Fut jumped more than +80 points and touched the high level of 6206 but after 11:30 am it slightly slope down and finally closed at 6166.60 with +50.40 points. I have generated buy call in NIFTY Nov Fut @ 6120 - 6170 on 21 Oct 2010 with Target of 6276 - 6305 and Stop loss is 6044 - 6076, after generating the call NIFTY Nov Fut touched the level of 6116.20 on 22 Oct 2010. On 20 Oct 2010 NIFTY Nov Fut closed at 6158.95. At this level i generated buy call in NIFTY Nov fut, but suggested to buy between 6120 - 6170 according to risk level.


If we see the spot, NIFTY touched 6150 and closed at 6105.80 with +39.75 points today. NIFTY spot High is 6284.10 in Oct 2010. Market is showing that it will make the new high. So keep hold the long position in NIFTY Nov Fut with long position in NIFTY 6100 Put Nov expiry to hedge the long position in NIFTY Nov Fut + Short Position in NIFTY 6400 Call Nov expiry at given levels in the call.

Current Trading Strategy on NIFTY Fut @ 6158.95 Nov expiry 2010

Today Market has performed very well and showing to touch the new high level. NIFTY spot at 6101.50 and Oct Fut at 6135.15 and Nov Fut at 6158.95.

Support & Resistance of NIFTY Fut Nov expiry

Resistance :- 6212.30, 6265.65, 6355.40

Support :- 6069.20, 5979.45, 5926.10

Balance Point of NIFTY Nov 2010 Expiry 6122.55

Support & Resistance of NIFTY Spot

Resistance :- 6148.36, 6195.23, 6276.96

Support :- 6019.76, 5938.03, 5891.16

Balance Point NIFTY Spot 6066.63

NIFTY 5 days Movement

NIFTY 3 months Movement

NIFTY 6 months Movement

NIFTY 1year Movement

So, we can do following trading strategy in NIFTY fut & Options

Collar

Buy NIFTY Fut Nov 2010 between 6120 - 6170(according to risk level) with Stop loss of 6044 - 6076(according to risk level) with the Target 6276 - 6305(according to profit level) + Buy NIFTY 6100 Put Nov expiry @ 128.10 + Sell NIFTY 6400 Call Nov Expiry @ 62.45.

Target Achieved in NIFTY Fut Buy Call @ 6060 on 18 Oct 2010

Target Achieved in NIFTY Fut Buy Call given @ 6082.90 or 6060 - 6100 on 15 Oct 2010. NIFTY Fut crossed the target which was 6135 and made the high level 6136 and closed today @ 6133. Today the market came from red signal to green signal in closing hours. The low was 6007.60. This signal shows NIFTY fut is closing above 6000 by this expiry so carry the short position in NIFTY 6000 Put @ Rs.42.70 (Current CMP as on 18 Oct 2010 is Rs. 32.36) given on 11 Oct 2010.

NIFTY 5 days Movement

Major Support & Resistance of NIFTY as Expiry Point of View

Resistance :- 6245, 6414.05, 6544

Support :- 5946, 5816.05, 5647

Balance Point or Break even Point 6115.05 as expiry point of view

Support & Resistance of NIFTY as trading Point of View

Resistance :- 6176.80, 6220.60, 6305.20

Support :- 6048.40, 5963.80, 5920

Balance Point or Break even Point 6092.20 as trading point of view

Profit :- 6135 - 6060 = +75 points per lot (Rs.3750 (50*75 points) per lot )

Current Trading Strategy on NIFTY @ 6082.90

After two days rally NIFTY slightly fall. NIFTY jumped more than +250 points with in two days 13 & 14 Oct 2010. After that NIFTY fall more than 100 points in 1 day on 15 Oct 2010 due infosys result pressure. But i see this down as buying opportunity in NIFTY Fut with some strong keep eye view means strict stop loss or consider the sensitive level for NIFTY.

NIFTY 5 days Movement

So, we can take following trading position in NIFTY Fut:-

BUY NIFTY @ current level or buying between @ 6060 - 6100 according to your risk level with strict stop loss of 6000 with the Target of 6135.

Target Achieved in NIFTY Fut and Options on 13 Oct 2010

Two Trading call had been generated in NIFTY Fut and Option

First was Long Combo, Covered Call on 23 Sept 2010 & tracked on 09 Oct 2010

and,

Second was Synthetic Long Call and Buy NIFTY Fut + Sell OTM Put generated on 11 Oct 2010 & tracked on 12 Oct 2010.

Today NIFTY Fut touched the magical level of 6275 which was my first target in long position in NIFTY Fut and made the high level 6281.

So Profit in ,

*Long Combo:- +31.45+90.50 = 121.95*50 = Rs. 6097.50 per lot (Long Combo: Buy NIFTY Call oct 2010 expiry 6300 @ Rs. 43.55 + Short NIFTY Put oct 2010 expiry 5800 @ Rs. 96.80)

CMP AS ON 13 OCT 2010:- NIFTY Call oct 2010 expiry 6300 @ RS.74.95 & NIFTY Put oct 2010 expiry 5800 @ RS.6.30

*Covered Call:- +323.85-32.55 = +291.30*50 = Rs.14565 profit per lot (Covered Call: Buy Nifty Fut Oct @ 5950 - 6010 + Short NIFTY Call 6300 of oct 2010 expiry @ Rs. 42.40.)

CMP AS ON 13 OCT 2010:- NIFTY Fut @ 6273.85 & NIFTY Call 6300 of Oct 2010 expiry @ Rs. 74.95.

*Long Combo & Covered Call had generated on 23 Sept 2010

#Synthetic Long Call:- +114.10-30.55 = +83.55*50 = Rs. 4177.50 profit per lot (Synthetic Long Call: Buy NIFTY Fut @ Current Levels @ 6159.75 or buy between 6130 - 6170 according to your risk level + Buy NIFTY 6100 PUT@ Rs. 60 - 70.05 with the target of 6260-6275 with the stop loss of 6107.29.)

CMP AS ON 13 OCT 2010:- NIFTY Fut @ 6273.85 & NIFTY 6100 Put @ Rs. 30.55

#NIFTY Fut + Sell OTM Put:- +114.10+25.80 = +139.90*50 = Rs.6995 profit per lot (Buy NIFTY Fut + Sell OTM Put:

Buy NIFTY Fut @ Current Levels @ 6159.75 or buy between 6130 - 6170 according to your risk level + *Sell NIFTY 6000 Put @ Rs. 42.70, TARGET 6260 - 6275, STOP LOSS 6107.29.)

CMP AS ON 13 OCT 2010:- NIFTY Fut @ 6273.85 & NIFTY 6000 Put @ Rs.16.90

# Call had generated on 11 Oct 2010

Market Mid day Report on NIFTY Fut 13 Oct 2010

Again NIFTY Fut Rocks and covered +130 points @ 6213 from the yesterday day's low which was 6083. So in my trading call Long position in NIFTY Fut recommended @ 6130 - 6170 or @ 6159 is generating profit +83 points per lot. Keep hold the position and book profit when NIFTY Fut comes to around 6266 - 6285 or 6300 according to your risk level.

NIFTY COMMENTRY ON 12 OCT 2010

Finally NIFTY Fut closed at 6118.65 and above 6083 which was the today's low and did not break 6066 level and spot closed at 6090.90 and did not break the 6050. So it shows positive sign. So the call is still active now.

NIFTY 5 Days Movements

NIFTY 1 Month Movement

NIFTY 3 Months Movement

So above NIFTY movements clearly indicate that NIFTY is Moderately Bullish at Current Levels. So my target is still 6275 -6300 now.

Tracking Trading Call Given in NIFTY FUT@ 6159.75 on 11 Oct 2010

Chart of NIFTY Spot on 12 Oct 2010 by 11.41

Today 12 Oct 2010 Stop loss triggered in NIFTY Buy call given@ 6159.75 on 11 oct 2010, but i will continue my call with the stop loss 6107.29. Buy call given in Nifty 6100 Put @ Rs.60, today CMP is Rs. 96. So Put is generating profit and hedging the Long Position in NIFTY. Today's closing is very important to decide the direction of NIFTY. 6066 level in NIFTY Fut is very important. If this level breaks then immediately exit from Long Position in NIFTY Fut and continue with NIFTY 6100 Put. Today on 12 Oct 2010 NIFTY Fut Low is 6083 and Spot Low is 6059 at 11.51 AM. My call is not the intraday call, its positional call from expiry point of view.

Trading Strategy at Current Level in NIFTY Fut @ 6159.75 closed on 11 Oct 2010

Today Nifty Fut Closed @ 6159.75 at premium + 23.9 of

and Spot closed @ 6135.85.

So, Resistance for NIFTY Fut - 6189.26, 6218.81, 6245.13

Resistance for NIFTY Spot - 6180.41, 6224.98, 6262.21

and, Support for NIFTY Fut - 6133.43, 6107.11, 6077.58

Support for NIFTY Spot - 6098.61, 6061.38, 6016.81

Last week Trading session shows that market is trying to touch the 6275 - 6300 and NIFTY have touched 6221.30 two times. So for further market is not looking below 6077.58 - 6061.38 by this expiry.

So we can take the following trading position in NIFTY Fut on the basis of Current level @ 6159.75.

1. Synthetic Long Call

2. Buy NIFTY Fut + Sell OTM Put

1. Synthetic Long Call means:-

BUY STOCK + BUY OTM PUT means Long Position in NIFTY Fut + Buy NIFTY Put Option

Buy NIFTY Fut @ Current Levels @ 6159.75 or buy between 6130 - 6170 according to your risk level + Buy NIFTY 6100 PUT@ Rs. 60 - 70.05 with the target of 6260-6275 with the stop loss of 6107.29.

In this trading call Put is buying to hedge the Long Position of NIFTY.

So the call is BUY NIFTY FUT @ 6130 - 6170 OR AT CURRENT LEVEL @ 6159.75 + BUY NIFTY 6100 PUT @ 60 - 70.05, TARGET 6260 - 6275, STOP LOSS 6107.29.

2. Buy NIFTY Fut + Sell OTM Put means:-

Buy NIFTY Fut @ Current Levels @ 6159.75 or buy between 6130 - 6170 according to your risk level + *Sell NIFTY 6000 Put @ Rs. 42.70, TARGET 6260 - 6275, STOP LOSS 6107.29.

*NIFTY is not seeking below 6000 by this expiry. So sell call is there to grab the guarantee income. IF NIFTY Close above 6000 the you will get Rs. 42.70, which is guarantee income.

So enjoy the Call.

TRACKING NIFTY'S COVERED CALL & LONG COMBO GENERATED ON 23 SEPT 2010

I had generated trading call on NIFTY on 23 Sept 2010 was Covered Call
and Long Combo. The call was

"CURRENT TRADING STRATEGY ON NIFTY @ 5953
Market is not looking for bearish mode by next expiry. You can take
long position in NIFTY from the current levels or you can do covered
call means Buy Nifty Fut Oct @ 5950 - 6010. You can buy at any level
between given range and Stop loss should be @ 5800 - 5820 + Short NIFTY
Call 6300 of oct 2010 expiry @ Rs. 42.40.
Means ,

Covered Call
Buy Nifty Fut Oct @ 5950 - 6010 + Short NIFTY Call 6300 of oct 2010
expiry @ Rs. 42.40.
or,
You can do long combo means
Buy NIFTY Call oct 2010 expiry 6300 @ Rs. 43.55 + Short NIFTY Put oct
2010 expiry 5800 @ Rs. 96.80"


Now the call is successfully running now. On 07 Oct 2010 NIFTY
Fut Oct @ 6208, buy call given @ 5950-6010.Today NIFTY Call oct 2010
6300 @ Rs.67.65, buy call given @43.55 and NIFTY Put oct 2010 5800 @
Rs.20.90, short call given @ 96.80.If you have taken position in this
call then keep hold the position and book profit around NIFTY @ 6275-
6300. Enjoy the call.