Nifty future is trading higher by about 100 points and we believe this up move will continue till nifty reaches a resistance level, So it would be better if we trade nifty options. Hence buy nifty 4800 call options for short term near 49 level for target price of 90 and then 130 levels, Looking at charts we see nifty future has more room for up move. Stop loss for this trade should be just under 29 level or traders must exit this option strategy if nifty future trades below 4700 level. On weekly charts 4800 level is 200 SMA, hence strong support. We always enter the market in a pull back, in the direction of the daily trend. Also Nifty future has added about 34 lakh shares in open interest (OI) today, Experts conclude that this is long position that was added today, Put options has also see so much of writing and all of them being out of money type put option.
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.
Leave a Reply