Nifty 50 for 9/6/2023
Hello Traders,
Hope you're well.
Today, buying options, especially Puts, was tough as the market made three peaks and premium prices dropped fast. Even if you were right about the direction, it was hard to hold onto your trade.
Earlier, we pointed out that 19,230 was a good buying area, and it turned out right. We saw a 350-point rise from there. Many expected the market to go below 19,230, but it surprised us by going up to 19,574.50. What's next? Read below.
Support Areas for Nifty 50:
Two buying zones to watch are around 19,482 to 19,452. Wait for the market to hit these levels before buying. Aim for 19,527 and 19,562 with a stop loss below 19,445. Be patient and don't rush into trades. If Nifty goes under 19,440, be prepared for a drop to 19,260.
Resistance Areas for Nifty 50:
The high today was 19,587, a strong resistance. We think the market might return to these levels to shake out sellers and attract new buyers. If Nifty goes above 19,587 and then drops back down, consider buying Put options (PE) with a stop loss at the highest point of that drop. This could result in an 87-point move to 19,500.
Personal Opinion:
While we've given different scenarios, our personal view is that if the market stays above 19,600 for a whole day, it could aim for 20,000 soon. Many traders are still ready to buy Puts, and sentiment remains unchanged.
Please note that I am not a SEBI registered advisor, and these trades are for educational purposes only.
We recommend focusing on intraday trades and avoiding holding positions overnight.
Hope you're well.
Today, buying options, especially Puts, was tough as the market made three peaks and premium prices dropped fast. Even if you were right about the direction, it was hard to hold onto your trade.
Earlier, we pointed out that 19,230 was a good buying area, and it turned out right. We saw a 350-point rise from there. Many expected the market to go below 19,230, but it surprised us by going up to 19,574.50. What's next? Read below.
Support Areas for Nifty 50:
Two buying zones to watch are around 19,482 to 19,452. Wait for the market to hit these levels before buying. Aim for 19,527 and 19,562 with a stop loss below 19,445. Be patient and don't rush into trades. If Nifty goes under 19,440, be prepared for a drop to 19,260.
Resistance Areas for Nifty 50:
The high today was 19,587, a strong resistance. We think the market might return to these levels to shake out sellers and attract new buyers. If Nifty goes above 19,587 and then drops back down, consider buying Put options (PE) with a stop loss at the highest point of that drop. This could result in an 87-point move to 19,500.
Personal Opinion:
While we've given different scenarios, our personal view is that if the market stays above 19,600 for a whole day, it could aim for 20,000 soon. Many traders are still ready to buy Puts, and sentiment remains unchanged.
Please note that I am not a SEBI registered advisor, and these trades are for educational purposes only.
We recommend focusing on intraday trades and avoiding holding positions overnight.
Disclaimer
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