-The index managed to sustain the gap-up which we saw and the result was we have a break-out of the flag pattern which i have already explained in the previous educational chart -Now looking at the indicators 1)RSI ITSELF HAS SHOWN BREAKOUT OUT OF THE FLAG PATTERN 2)MACD HAS SHOWN POSITIVE CROSS-OVER 3)ADX HAS SHOWN POSITIVE CROSSOVER -There can now be two outcomes that:- 1)The index will close the gap-up distance and trade on the negative side and will confirmation whether its a flag or a descending channel.(highly unlikely) 2)The index will manage to show another strong gap-up which will shown further strength the index will lead to higher levels and will give confirmation of flag pattern. (most expected due to gujarat election result) NOTE:- DUE TO HOLIDAY SEASON THE INDEX MIGHT SEE SUBDUED MOVEMENT DURING THE LAST TWO WEEKS ANYWAY IF THE ABOVE THING TAKE PLACE WE WILL SEE HIGHER LEVELS IN THE COMING MONTH.
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NIFTY TOMORROW WILL TEST THE LEVELS OF 10400-10390 HOLD YOUR SHORT POSITIONS.....
Nice analysis. Any suggestive trade for December expiry? Any options that can written without risk
manavtechresearch
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@sharuvman,
Write 10500 call option @46 stop @70 look to hold to full expiry
Or instead buy 10350 put @40 i am quiet sure market does not have the strength to cross 10500
Book profits @65
Book losses @20
UnknownUnicorn1642156
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@manavtechresearch, Thanks. Will enter these trades tomorrow. Is it still valid after today's run up?
@manavtechresearch, when writtin a call remember that time is your friend!! the longer the range trading the better for you!!
if you have brought the put option hold it or add more to your position my post on nifty is for long term traders but we are now entering holiday season you have to be patience
UnknownUnicorn1642156
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@manavtechresearch, does it make sense to short Nifty futures today around 10500 instead of buying puts? You also mentioned in another post about tata steel long. There are quite a few on the verge of breakout. Is OK to go short in this situation? Have burnt fingers on two occasions going long in nifty when it corrected.
manavtechresearch
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@sharuvman, the point is we are here trying to time the market by placing orders were the risk to reward ration is good
yes you can short futures for a day trade and keep short targets there will be profit booking today
manavtechresearch
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@sharuvman, watch out for crude oil levels and maximum Open interest of call option is seen @10500