Fix a Smile on your face permanently…
You may refer to the last weeks report for assessing the accuracy of technical. Even after the major economic chaos in US and the related mayhem in the Asian markets, NIFTY took support at the theoretical target of the Head and Shoulders. Incidentally, this was the horizontal support at 3800 too. There after it a strong bounce and now it is at the 62% Fibonacci resistance level. There is a high chance that NIFTY goes high volatile in this region for 2-3 days and the next level on drop starts towards 3250.
If we look at relevant part of the weekly chart, within box, you can see that it “might” form an Adam and Adam Double Bottom (AADB). The AADB gets confirmed only after NITY close above 4650. If that happens, then NIFTY will have a target of 5180.
Confused ? Do not worry.
You may refer to the last weeks report for assessing the accuracy of technical. Even after the major economic chaos in US and the related mayhem in the Asian markets, NIFTY took support at the theoretical target of the Head and Shoulders. Incidentally, this was the horizontal support at 3800 too. There after it a strong bounce and now it is at the 62% Fibonacci resistance level. There is a high chance that NIFTY goes high volatile in this region for 2-3 days and the next level on drop starts towards 3250.
If we look at relevant part of the weekly chart, within box, you can see that it “might” form an Adam and Adam Double Bottom (AADB). The AADB gets confirmed only after NITY close above 4650. If that happens, then NIFTY will have a target of 5180.
Confused ? Do not worry.
Normally, In such situations you are likely to make loss, NIFTY hitting your stops, whatever position you take LONG or SHORT. Is there any way to make big gains with too less risk? Yes. Getting interested? Let us see how to do that.
Now, we can see from the above description that NIFTY can move either to 3250 or 5180. That means around 800 to 1000 points move is possible in the next couple of weeks, either way. This is where the Long Straddle strategy comes handy. You take both 4300 CALL and PUT of Oct series. Once NIFTY moves outside 100 points (approximately) you are breakeven and the rest of the move is your gain. Now, you are not bothered about the direction of NIFTY. “let it go up or Down”. It has to move over 100 points, either way. Even a Circuit Breaker on the upside or downside will not give you sleepless nights. In both cases, you gain. Now, you can fix à smile on your face permanently.
I was advocating 4500, and later a 3900 straddle at the appropriate time through my Blog. Both were exit with handsome risk-free gains. Now near the close of the market on 19th Sep, I had recommended a 4300 straddle. Of course, there is a small risk involved in this strategy. This information is freely available on the net and those interested can read it. The critical point of this strategy is deciding the straddling point. I am guiding it through my Blog
Now, we can see from the above description that NIFTY can move either to 3250 or 5180. That means around 800 to 1000 points move is possible in the next couple of weeks, either way. This is where the Long Straddle strategy comes handy. You take both 4300 CALL and PUT of Oct series. Once NIFTY moves outside 100 points (approximately) you are breakeven and the rest of the move is your gain. Now, you are not bothered about the direction of NIFTY. “let it go up or Down”. It has to move over 100 points, either way. Even a Circuit Breaker on the upside or downside will not give you sleepless nights. In both cases, you gain. Now, you can fix à smile on your face permanently.
I was advocating 4500, and later a 3900 straddle at the appropriate time through my Blog. Both were exit with handsome risk-free gains. Now near the close of the market on 19th Sep, I had recommended a 4300 straddle. Of course, there is a small risk involved in this strategy. This information is freely available on the net and those interested can read it. The critical point of this strategy is deciding the straddling point. I am guiding it through my Blog
