The cocktail of Volume profiles, Option Analysis , Indicators & EW did the trick again.
As analyzed the correction terminated in the first half with a new low (EW) , the positive diversion was maintained with new lows too (Indicators with positive diversion ) and as expected the bounce came in the second half (EW + exhausted Indicators). Nifty traded on both sides of 6000 with expiry above 6000 level (Option Analysis ),also expected in the Weekend post.The range was maintained with 5960 level and 6050 levels as extremes (Volume Profiles).
Also it was mentioned yesterday that last week open interest addition and specially last day ones are risky speculative trades ,normally dumb ,to be swallowed by smart money.Yesterday it was 6100 put writers which have been agressively adding in last three days ,today were 6000 call writers who were active since yesterday in huge quantity, that were butchered. Please remember this aspect when analyzing open interest and not get swayed in the positional trades by these expiry blues.
Going further ,6070 and 5930 level will play important role in deciding EW labelling and Nifty movement.
Hope U all had a great trading day .
6 comments:
Hi az,
welcome back,
Hope mom and kid are doing fine.
Thanks for going through posts in ur busy schedule ,hope they helped u in trades.
Hi Sujatha,
Hope u bought near 5960 with s/l as decided yesterday EOD and minted manna in ur busy schedule.
Thanks RV.
It is extremely risky to write options a day before expiry, but i guess the writers earn round the year so a few expiry like today's are needed to keep the option buyer's interest alive. :)
Very clear, RV,
first the 5960 6050
now will be 5930 6070
:)
the 6000, as u say, has been pivoting.
thanks for all your detailed posts.
its on the dot.
regards
@ rm
good logic
@mok
These levels are the last pivots high and low.broadly if not bought yesterday near lows ,buying can be done above 6070/6050 levels or positional selling below 5930/60 .
@ rm
good logic
@mok
These levels are the last pivots high and low.broadly if not bought yesterday near lows ,buying can be done above 6070/6050 levels or positional selling below 5930/60 .
Post a Comment