NIFTY TRADE SETUP FOR MONDAY 17-04-2023
The Nifty range for today is 17850-17725. We recommend a long position above 17865 with a target of 18000 and a stop loss at 17820. A short position is advisable below 17700, with targets at 17650 and 17600.
In the smaller time frame, if the market opens above 17850 and sustains, then we believe that every dip is a buying opportunity. In this market, we prefer to sell Puts rather than buy Calls.
If the market opens below 17830 and fails to cross 17850 in the first 30 minutes, then we recommend selling the 17800 Call with a stop loss at 17870.
In the case of a flat opening, we suggest selling both Calls and Puts, marking the 30-minute swing high and swing low.
We recently received a query about one of our analyses, with concerns about the capital required to sell. We use a simple technique provided by Icicidirect, such as selling the 17500 Call (ATM) and buying the 18000 Call, resulting in a margin requirement of approximately 40k. We recommend checking with your broker for more details.
In conclusion, trading success is about finding a way and effectively managing risk and reward.
In the smaller time frame, if the market opens above 17850 and sustains, then we believe that every dip is a buying opportunity. In this market, we prefer to sell Puts rather than buy Calls.
If the market opens below 17830 and fails to cross 17850 in the first 30 minutes, then we recommend selling the 17800 Call with a stop loss at 17870.
In the case of a flat opening, we suggest selling both Calls and Puts, marking the 30-minute swing high and swing low.
We recently received a query about one of our analyses, with concerns about the capital required to sell. We use a simple technique provided by Icicidirect, such as selling the 17500 Call (ATM) and buying the 18000 Call, resulting in a margin requirement of approximately 40k. We recommend checking with your broker for more details.
In conclusion, trading success is about finding a way and effectively managing risk and reward.
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