BNF finally after many days did overshadow Nifty today. Will the follow through continue? what could be a possible expiry setup?
Will follow through continue - we will come to know by tomorrow day end, I feel it has got high chances of going up tomorrow as well. For the ones who would have referred to my earlier idea on BNF would be already long.
The market texture is quite volatile, so trying to predict the right entry or SL would be challenging. we can form a strategy based on some hypothesis and known factors.
What are known factors?
1. 34000 demand zone is a quite strong and huge amount of buying has happened twice in the last couple of days
2. if somehow due to market sentiments BNF again goes to test those levels, clearly means sellers have taken over and betting on the long side would be risky as we may see long unwinding taking prices further down or consolidating near it
3. based on the above - an SL zone 34580 can be a decent assumption. Because if BNF goes below that, it's going to test 34000 lvls and we won't be going long.
4. the first major resistance on the upside is at 35400 levels - so that should be our first target
5. a major supply zone end at 35800 lvls. so that can be our second target
There could be multiple strategies if you already have your hypothesis ready. It can be buying future positionally and hedging it with PE from time to time, or if you prefer option selling, selling PE near low and selling CE near targets, or if you prefer covered calls buying ATM / ITM CE and selling OTM CE. or if you prefer being speculator buying naked CE will work as well.
the key is to calculate your break-even levels and SL beforehand to know your risk.
In these markets, keeping overnight positions to low and managing position sizing remains key. If you are on the right side, in a couple of days with the right market direction you may fetch more money in few positions only.
Safe Trading
Will follow through continue - we will come to know by tomorrow day end, I feel it has got high chances of going up tomorrow as well. For the ones who would have referred to my earlier idea on BNF would be already long.
The market texture is quite volatile, so trying to predict the right entry or SL would be challenging. we can form a strategy based on some hypothesis and known factors.
What are known factors?
1. 34000 demand zone is a quite strong and huge amount of buying has happened twice in the last couple of days
2. if somehow due to market sentiments BNF again goes to test those levels, clearly means sellers have taken over and betting on the long side would be risky as we may see long unwinding taking prices further down or consolidating near it
3. based on the above - an SL zone 34580 can be a decent assumption. Because if BNF goes below that, it's going to test 34000 lvls and we won't be going long.
4. the first major resistance on the upside is at 35400 levels - so that should be our first target
5. a major supply zone end at 35800 lvls. so that can be our second target
There could be multiple strategies if you already have your hypothesis ready. It can be buying future positionally and hedging it with PE from time to time, or if you prefer option selling, selling PE near low and selling CE near targets, or if you prefer covered calls buying ATM / ITM CE and selling OTM CE. or if you prefer being speculator buying naked CE will work as well.
the key is to calculate your break-even levels and SL beforehand to know your risk.
In these markets, keeping overnight positions to low and managing position sizing remains key. If you are on the right side, in a couple of days with the right market direction you may fetch more money in few positions only.
Safe Trading
Transakcja zakończona: osiągnięto poziom stop:
BNF did try multiple time but eventually, SL got hit. Though the day-end closing is higher than 34580, it's too late in the day for this series.
Komentarz:
Did reach the target but not in the current series
