Nifty: Chart set up & Follow up

Nifty

This is in continuation from my previous post given on March 29, 2022

If we observe, after breakout from the yellow box, Nifty took a "U" turn exactly from the Line of Resistance identified earlier and baring 2 days, Nifty has traded in the upper green box :-)

Strategy given on Mar 29 2022 factored in this kind of possible movement & kept me in control of the situation

Short Strangle Strategy
Sell Nifty 28 April 16300 Put Option @120
&
Sell Nifty 28 April 18300 Call Option 80

Strategy update
16300 Put option (CMP 12)
18300 Call Option (CMP 26)

Despite the Ups & Downs in Nifty, Profit in strategy so far
50*(200-38) = Rs 8100 per strategy lot

Hope those who followed the trade, found it beneficial 🙂
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Going forward, I have added 20 day EMA and 50 day EMA for further cues. Nifty has already tested 20 day EMA today and 50 day EMA is not that far away. I would be watching them closely. A good trending market tends to take Support at 20 day / 50 day EMA.

This EMA cue is my guiding factor in further Nifty trade.

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Use Technical Analysis to:-
- assess your Risk & Reward potential,
- understand possible different scenarios (best case and worst case) and
- then make trading strategies which can help you manage your worst case situations
- have provisions to accept if movement is beyond your imagination and do not try to fight a losing battle
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You follow this and you should do well in the longer run..!!!

I trade less so you might see my post every day...
but I Trust you will find the above mantra useful in planning your trade 🙂

Take care & stay blessed...!!!

Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be