Today's Nifty Futures levels to watch out for:
Buy Above: 5643.76 SL: 5625 Targets: 5659.73, 5678.54, 5697.39, 5716.28
Sell Below: 5625 SL: 5643.76 Targets: 5609.06, 5590.35, 5571.67, 5553.02
Buy/Sell Call/Put options as soon as price crosses the above Nifty
Futures Buy(5643.76) / Sell(5625) limits.
Strategy: We will look for price to break, with reasonably good Price Action candle, for the Buy level (5643.76) or Sell level (5625). Please refer below pictures for reference. Picture A below, shows Nifty Future 5min candlestick chart and Picture B below shows Nifty-PE5500 strike 5min candlestick chart.
So, we wait for Price to break our Sell level of 5625. This would be playing with the trend. Price breaks the Sell level at 12:50 PM IST. We immediately go and open a Buy call for any of the Nifty Put options available. Always go for the strike price that has Open Interest in the top 3 in terms of number of contracts shown in OI. Here, I had chosen Nifty PE5500. You can easily see from Picture B above, the PE Option price went on going up from 12:50 pm onwards, after a small break.
After taking this position, we will keep monitoring the Nifty Future price levels and as soon as a TP level hits, we will immediately close 1 lot. If price hits TP1 and shows signs of going down further, exit all lots at this point with a small loss and don't wait till the actual SL is hit. However, if price keeps moving up and keeps hitting subsequent TP levels, we will close 1 lot at each TP level, till all our lots are executed.
In this case, since we have 4 TP levels, it would be good to have lot sizes of multiples of 4 for easy calculation and quick closure. Example: 50 units make 1 lot. So, the lots should be in 4 multiples, like 200, 400, 600, 800... etc. depending on how much you wish to invest.
In the above live example, todays signal, we see price had hit TP1 and then went further down, after a small retracement, and closed tad above the low, but surely below TP1 level. So we would have closed all positions today at around 3:15 pm for a nice profit.
Profit for Today's Signal: We entered Nifty PE5500 at 33.35 and exited at 44.67. Difference of Rs. 11.32 per unit bought. That translates to Rs 566 per 50 units lot. That's, Rs 5660 for 10 lots for 33% gain. You can deduct your brokerage amount from this to get your Net Profit for the day.
Hope you have understood this strategy. For any queries / suggestions/ feedback's please do write into daytraderbt@gmail.com
I will be looking forward to your emails...
Happy Trading...
Cheers!
DayTraderBT
Buy Above: 5643.76 SL: 5625 Targets: 5659.73, 5678.54, 5697.39, 5716.28
Sell Below: 5625 SL: 5643.76 Targets: 5609.06, 5590.35, 5571.67, 5553.02
Buy/Sell Call/Put options as soon as price crosses the above Nifty
Futures Buy(5643.76) / Sell(5625) limits.
Strategy: We will look for price to break, with reasonably good Price Action candle, for the Buy level (5643.76) or Sell level (5625). Please refer below pictures for reference. Picture A below, shows Nifty Future 5min candlestick chart and Picture B below shows Nifty-PE5500 strike 5min candlestick chart.
Picture A
Picture B
Looking at Picture A, we can clearly see price broke the Buy Level of 5643.76 and went up. However, we will not take this trade as the overall trend as per the Moving Averages is slanted down. You may get into a counter trend, however, better to be with the trend. Remember, the adage: Trend is our Friend.Well, it holds very true here, particularly because, the SMA200 and SMA100 are both pointing down when price breaks Buy level.So, we wait for Price to break our Sell level of 5625. This would be playing with the trend. Price breaks the Sell level at 12:50 PM IST. We immediately go and open a Buy call for any of the Nifty Put options available. Always go for the strike price that has Open Interest in the top 3 in terms of number of contracts shown in OI. Here, I had chosen Nifty PE5500. You can easily see from Picture B above, the PE Option price went on going up from 12:50 pm onwards, after a small break.
After taking this position, we will keep monitoring the Nifty Future price levels and as soon as a TP level hits, we will immediately close 1 lot. If price hits TP1 and shows signs of going down further, exit all lots at this point with a small loss and don't wait till the actual SL is hit. However, if price keeps moving up and keeps hitting subsequent TP levels, we will close 1 lot at each TP level, till all our lots are executed.
In this case, since we have 4 TP levels, it would be good to have lot sizes of multiples of 4 for easy calculation and quick closure. Example: 50 units make 1 lot. So, the lots should be in 4 multiples, like 200, 400, 600, 800... etc. depending on how much you wish to invest.
In the above live example, todays signal, we see price had hit TP1 and then went further down, after a small retracement, and closed tad above the low, but surely below TP1 level. So we would have closed all positions today at around 3:15 pm for a nice profit.
Profit for Today's Signal: We entered Nifty PE5500 at 33.35 and exited at 44.67. Difference of Rs. 11.32 per unit bought. That translates to Rs 566 per 50 units lot. That's, Rs 5660 for 10 lots for 33% gain. You can deduct your brokerage amount from this to get your Net Profit for the day.
Hope you have understood this strategy. For any queries / suggestions/ feedback's please do write into daytraderbt@gmail.com
I will be looking forward to your emails...
Happy Trading...
Cheers!
DayTraderBT
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