Nifty has formed RSI Bearish Divergence and tries to break trend-line. It looks weak below 8700 (Attached chart)

Nifty has formed RSI Bearish Divergence and tries to break trend-line. It looks weak below 8700 (Attached chart)

Time: 8:00 am                                            FII: -67 Cr DII:
+225 Cr
Nifty
·        
Nifty has formed RSI bearish divergence in Daily chart.
·        
MACD negative cross over had happened and RSI is coming down.
·        
Nifty is trying to seek support around 8716 (Trend line and
Fibonacci retracement).
·        
If it breaks here in closing basis, the next level of support is
at 8560.
·        
Attached the chart explaining the same.
·        
TAMO bearishness changed the momentum of AUTO sectors.
·        
Sun pharma fall encourages pharma sector bearishness.
·        
There was not much short other than AUTO sector.
·        
Short covering happened only in Reliance.
·        
Banknifty is not weak compared to Nifty.
·        
All index heavy weight stocks INFY, TCS, Reliance, ITC, HDFC
Bank and HDFC are bullish.
·        
Manage your sold out PE by selling CE, Better not short. Market
may bounce back at any time.
·        
Aggressive short positions have been added to all AUTO sectors and
SUNPHARMA.
·        
It is only profit booking as per FNO data and it is nail biting
time.
·        
Nifty is going to test patience with buyers.
Banknifty
·        
ICICI Bank and HDFC Bank are almost flat in USA.
·        
There was no threat to Banknifty as such.
·        
Danger zone to Banknifty is at 19700 only. Till that time, it is
safer.
·        
Yes Bank has formed RSI bearish divergence, but no short
position is created.
·        
Only profit booking happened in yes Bank, good to sell CE.
·        
Big Brother HDFC Bank is trading in all time high value and long
is maintained.
·        
PSU Banks are shaking Banknifty, but nothing to get worried.
·        
Short positions had been added to midcap PSU Banks right now.
·        
Nothing to get worried for the time being.
·        
Manager your sold PE by selling 21500 CE
·        
Banknifty is not trying to break trend-line.
·        
Banknifty will show its natural strength volatility in expiry.
·        
RSI is coming down.
My Position & Trading Plan
·        
Sold out additional 19500 PE and 21000 CE
·        
Booked profit in 18500 PE and 21200 CE.
·        
Booked profit in 9050 CE.
·        
Started expiry trading from yesterday.
·        
Sold out 20500 CE for tomorrow expiry.
·        
Bought 1 lot 20000 PE and sold out 5 lots of 19900 PE and 10
lots of 19800 PE.
·        
Will buy March 8700 PE if market comes down again below 8700.
·        
Will sell March 9300 CE and 9200 CE if comes down.
·        
Wil sell more PEs if market goes up.
·        
Will move to next month slowly.
·        
Right now I am suffering from Expiry feverJ

·        
Having only 10% free cash now J.

Open Positions(24) Historical Download


Product Instrument Qty. Avg. price LTP P&L Chg.
NRML BANKNIFTY16FEB1719800PE NFO -400 5.00 5.00 0.00 0.00%
NRML BANKNIFTY16FEB1719900PE NFO -200 9.45 9.70 -50.00 +2.65%
NRML BANKNIFTY16FEB1720000PE NFO +40 19.90 21.00 +44.00 +5.53%
NRML BANKNIFTY16FEB1720500CE NFO -400 8.05 5.00 +1220.00 -37.89%
MIS BANKNIFTY17FEB18500PE NFO 0 0.00 5.00 +900.00 NA
NRML BANKNIFTY17FEB19000PE NFO -1000 18.70 8.00 +10696.00 -57.21%
NRML BANKNIFTY17FEB19500PE NFO -600 27.64 26.20 +866.00 -5.22%
NRML BANKNIFTY17FEB21000CE NFO -400 13.00 6.95 +2420.00 -46.54%
MIS BANKNIFTY17FEB21200CE NFO 0 0.00 3.00 +2876.00 NA
NRML BANKNIFTY17MAR20500CE NFO -80 410.00 361.05 +3916.00 -11.94%
NRML BANKNIFTY17MAR20500PE NFO -80 495.00 545.00 -4000.00 +10.10%
NRML NIFTY17DEC9000CE NFO -150 509.20 496.10 +1965.00 -2.57%
NRML NIFTY17DEC9000PE NFO -150 400.00 411.00 -1650.00 +2.75%
NRML NIFTY17FEB9000CE NFO -150 7.50 4.75 +412.50 -36.67%
NRML NIFTY17FEB9050CE NFO 0 0.00 2.95 +2610.00 NA
NRML NIFTY17MAR8100PE NFO -150 17.00 17.55 -82.50 +3.24%
NRML NIFTY17MAR8300PE NFO -150 26.00 33.00 -1050.00 +26.92%
NRML NIFTY17MAR8500PE NFO -450 56.39 62.20 -2612.81 +10.30%
NRML NIFTY17MAR8700PE NFO +150 103.50 115.95 +1867.50 +12.03%
NRML NIFTY17MAR8800CE NFO -150 145.50 137.45 +1207.50 -5.53%
NRML NIFTY17MAR8800PE NFO -150 176.00 157.30 +2805.00 -10.62%
NRML NIFTY17MAR8900CE NFO -150 129.73 91.80 +5688.75 -29.23%
NRML NIFTY17MAR8900PE NFO -150 175.00 208.00 -4950.00 +18.86%
NRML NIFTY17MAR9300CE NFO -150 18.00 12.15 +877.50 -32.50%
TOTAL 25,976.44

Jegathesan Durairaj, a mathematician by qualification, an Ex-software professional and now a full time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity in twitter as itjegan, with huge followers. He had won Zerodha 60 Day Challenge – 10 Times round-the-clock. He is one of the prime Option Writing Trainer and tutored close to 1000 members till now.

He is the Mastermind of CapitalZone – Active Option Trading where Traders can avail Trading Chart with customised indicators, FNO tools and Payoff analysis. His keynote is to provide whole FNO deets to be handy for Traders in a sole place.

Now he is taking more heed on hedging portfolio in Option Writing where we might subject to more market risk. He is streamlining his strategies often and improving perpetually. At this time unfolding ways to measure good-quality Trend Following System.

Conducting workshop in all Metro Cities (Delhi, Mumbai, Bangalore, Chennai and Coimbatore) often based on queries from Traders.

 

 

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