Nifty future was trading near its strong resistance level we believe this level will not get broken easily. So our trading plan is to go short on nifty as soon as nifty faces resistance or another way to trade this resistance level is Buy Nifty 4800 Put options. As there is still uncertainty in market and in this type of environment nifty options can be best idea to trade as holding an options requires you to pay only option premium and risk is limited to premium paid. In this case we are using strike price which is near to current market price of Nifty index. You may refer to choosing strike price for trading options guide. Things to watch in this trade, carefully look at open interest of Nifty future and Nifty 4800 call and put options. Traders must manage the open trade according to change in the open interest, It’s like short positions being added or shed from open interest.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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