Here is another nifty options trading idea, buy nifty 4900 put options near 89 level for targets as 139 and then 149 level. Exit strategy will be, if nifty future close above 4900 level then exit this put option and book loss. Idea behind this put options trade is Nifty future is trading near its resistance zone, unless we close above this zone we have bearish stance on nifty in medium term, so this level is very important to watch, for now it is strong resistance and any move towards it will attract selling pressure. So instead of going for shorting nifty future we will buy nifty 4900 put options and hold it for 4 to 6 trading sessions. Recently we have seen inflation easing and industrial production is still going lower, so fundamentals are mixed in our domestic economy; however USD is gaining room against Indian rupee. So for now inflation is not a major concern but it’s our own currency i.e Indian rupee depreciation. We can conclude that fundamentals have improved a bit but still no major policy reforms from government’s front. RBI has said in its last meeting that RBI may not lower interest rates for now, hence interest rates sectors will face resistance in near. Buy nifty 4900 put options in large quantities to trade this resistance level. Nifty future open interest suggests us short positions were added as there were 25lakh shares added to total open interest in nifty future.
this strategy worked for me 🙂 booked profit earlier as I think Nifty will be taking support @ 4900 today
Bhaveek Patel says
Hi Anand, nice to hear that. 🙂 If you like my way of analysis then do recommend it to your friends and relatives or colleague so that we can together share each other’s knowledge and we can have very good trading community.
sure Bhaveek, I m already sharing it 🙂