Hi friends,
Back again Again from few replies I see that most of you will feel tempted again to hold calls as the rally was just awesome.But Again i am saying the same the greed factor comes you should have habit to catch rally early and leave early rather than aiming from Everest top.
I know we have already exited and our calls rose few more but this feels good only when u r in small quantities,In case of large quantities u should square off early only.
What we are seeing now I have taken a stock of daily,weekly,monthly.
As some of the people said nifty needs to cross above 5050,But we have closed on border.So Here is the scene.
Daily- Resistance at 5050 ,5130-70 zone from where we rallied back down see the chart attached.
Peak resistance if 5150 zone gets broken is 5380 zone.
Support:- No support that's the real danger of these small rallies.Markets are not taking any support at below levels of if i ask u to enter calls and sudden reversal means suicide and loss of all the money earned till now.
Weekly:- falling weekly resistance at 5300,5350 zone.Again for weekly remains the same. No support for bottoms.So markets simply slide down to 4700 levels.
Monthly :- channel resistances at 5400 zone where we fell.
Of these i don't think we will head back to these levels as we are making lower highs and so any attempt to make newer high means downtrend is weakening.
So strategy going ahead
Daily:- one of the member asked whether we can buy calls .Looking after the chart seems like strength is back again but it would be very danger to do so reason being that no support for markets below till 4700.
So i leave the decision upto you if u want to take risk enter with first hand exit at 5150 around zone.Again if this zone also is broken then 5200 would be the peak.
Again the same logic if on daily basis we hit the 5150 zone we can start buying 5300 puts.If u want to be sure shot winner 5500 call sell at that level would be just a awesome trade.
Weekly:-On daily we may fly high but weekly closing basis above 5380 will not be good for bears.So again same logic beware weekly closings and plan ur exit if u r in puts.
Ideal case if u have purchased calls exit at levels given on daily and buy puts but remember the danger sign level of 5400 and above closing will be harmful for put buyers.So stop loss is 5500 if u r into puts at higher levels.
Monthly basis:- Again same you can enter calls ,levels are given by me but again once we hit the top again the same 5400 and above closing is real danger sign for large downtrend.So our stop loss area is 5500 if u r into puts at top levels.
Happy trading
Enjoy.