About trades today.
I sold 9200 PUT as there was a gap up opening. This position is trapped. I bought 9000 PUT to reduce overnight risk.
I also sold 9600 CALL as NIFTY crossed 9330 below. Booked Profit in that position.
I sold 9500 CALL when NIFTY crossed below 9300. That position is open.
In my May 6 Log
I had said
1. I think NIFTY may open gap down or little negative and move towards 9000.
2. Until we close above 9300, it is better to stay on short side.
3. Gap up opening is possible only when there is some positive global news. In that case, need to wait for close above 9350.
Review : NIFTY did not gap down, instead gap up. But it did not sustain over 9350. It did not close above 9300.
I have the following observations about today's price action
1. With Morning gap up, range was broken, but it turned out to be false breakout of 9350.
2. NIFTY consolidated in the tight range of 9300 and 9330 for morning hours and finally broke down below 9300.
3. In sell off below 9300, there was no momentum. Many bars are overlapping and with tails.
4. VIX fell little 3.81%
5. Advance Decline ratio 28:22 , neutral.
5. BANK Nifty fell down more and closed in negative, -0.7%
I read this action as
1. Trend is negative but momentum is lacking on downside. Considering uncertainty, this may continue going forward for some time.
2. Sometime soon, NIFTY will try to touch other boundary of the range , that is 9130,
I'll do a detailed post for weekly review for the week over the weekend.
I sold 9200 PUT as there was a gap up opening. This position is trapped. I bought 9000 PUT to reduce overnight risk.
I also sold 9600 CALL as NIFTY crossed 9330 below. Booked Profit in that position.
I sold 9500 CALL when NIFTY crossed below 9300. That position is open.
In my May 6 Log
I had said
1. I think NIFTY may open gap down or little negative and move towards 9000.
2. Until we close above 9300, it is better to stay on short side.
3. Gap up opening is possible only when there is some positive global news. In that case, need to wait for close above 9350.
Review : NIFTY did not gap down, instead gap up. But it did not sustain over 9350. It did not close above 9300.
I have the following observations about today's price action
1. With Morning gap up, range was broken, but it turned out to be false breakout of 9350.
2. NIFTY consolidated in the tight range of 9300 and 9330 for morning hours and finally broke down below 9300.
3. In sell off below 9300, there was no momentum. Many bars are overlapping and with tails.
4. VIX fell little 3.81%
5. Advance Decline ratio 28:22 , neutral.
5. BANK Nifty fell down more and closed in negative, -0.7%
I read this action as
1. Trend is negative but momentum is lacking on downside. Considering uncertainty, this may continue going forward for some time.
2. Sometime soon, NIFTY will try to touch other boundary of the range , that is 9130,
I'll do a detailed post for weekly review for the week over the weekend.