Prep for 10-14 May 2021

 

Hi guys,

This is my trading journal where I have been updating Bank Nifty intraday trading levels almost on a daily basis. This weekend onwards I plan to post the market outlook and my running/planned trades for the coming week.

Disclaimer: The intention here is to share my analysis with like minded people. None of the ideas I share here can be treated as a trade recommendation. Please note that derivatives trading carries a high level of risk and might not be suitable for all investors. You should seek advice from an independent financial advisor.

i) To start with, below is the Nifty 50 spot chart. We have been trading in a range for a few months now. Note that there was a failed break out attempt last week but we came back, retested the wedge and have broken out. Bank Nifty looks weaker on a relative basis.

Overall, Nifty spot crossing 15000 and Bank Nifty spot crossing 34000 would be super bullish. 

ii) HDFC has been trading in a channel since early March. Posted strong results yesterday. Max number of call writers sit at 2500, cmp 2496. A gap up on monday can make these call writers run for cover and HDFC prices can explode up (next resistance at 2600). Since HDFC forms a good % in Nifty index, an upmove here will influence Nifty. 

iii) Other than my short term system generated trades on Nifty and Bank Nifty, I do execute some long gamma and short gamma option trades on stocks depending on IV. On Friday, I booked my put credit spread on Hindalco and initiated the same strategy on Adani Ports (700/650 pe). I'm also looking forward to some result announcements next week that generates good short gamma opportunities.

If this blog adds value to people, I will add more content on a daily/weekly basis. 

Cheers,

Pratheesh Karthikeyan (PK)