When markets are in down trend, you can still make large amount of money by trading nifty options. Here is an example for you, when markets are in downtrend you should always wait for pullback to enter short position, buy in this case we will buy nifty put option. Nifty put options gain when market goes down, so if you buy nifty put option when market is in downtrend you will be able to gain from falling market with low risk trade. Option trading limits you risk to premium paid while buying the option, so your risk is limited while profit potential is unlimited. Only thing to remember is try to buy nifty put option when market move in opposite direction of short term trend.
Nifty options strategy:
When the trend is clear, in this case we are talking about downtrend. We are looking for buying nifty put options or selling (writing) nifty call options. Now the point is what should be the level, where we can accumulate these options. Well, I will be waiting for a small pullback before taking a position. Once there is a pullback, I will be selling nifty call options. Options writing will block margin of about Rs.40,000 per lot for nifty options.