Secrets of Option Trading ("Hero & Hero" , "No To Zero")

Day Trader Do's & Don'ts

Elliott Wave Pattern On Nifty Long Term Chart

100% Accuracy Strategy For Trading & Investing

Day Trader Psychology For Beginners

Latest Posts

Profitable Stocks for Next Week 05-10-20 to 09-20-20

Devendrasinh S. Chauhan

 Balkrishna Industries:-


Above is weekly chart of Balkrishna Ind and last week it closed at all time high level with positive volume. For coming week we may see upside rally towards 1600-1700 with Stop Loss at 1400.

ESCORTS:-

Above is Weekly chart of ESCORTS. On a weekly chart ESCORTS is ready to show strong upside move towards 1350 to 1500. After good consolidation between 1070-1270 finally it closed at 1283 and above 1300 strong upside rally can be seen. Stop Loss can be placed at 1240-1250 on a closing basis.

Cummins India:-


Cummins India looking bearish on Weekly chart. And showing sign of reversal towards downside. On a weekly chart Cummins is trading in down trend channel. If same pattern continues in coming period then we may see long term downside level of 320. For coming week one can short with Stop Loss of 500 for Target of 400-380.


Grasim Industries:-


On a weekly chart GRASIM Ind looking bullish above 770 with Stop loss of 750 for Target of 830-850. Grasim Ind has started trading above long term downtrend line of last 3 years. Since November 2017 to till date Grasim Ind is reversing from Upper Range of Trendline but this time it is showing some sign of reversal on upper side. Hence, keep this stock for positional point of view.

HDFC Life Insurance:-


HDFC Life Insurance
has formed Triple Top pattern and trading at strong support zone of 570-565. Hence, for coming wee if HDFC Life starts trading below 565 on a closing basis then we may see downside level of 550-540.

Tech Mahindra:-


We have seen strong upside rally in IT stocks and majority of stocks are trading near all time high. One of the IT stock Tech Mahindra that has not participated in that rally, now ready to show its upside rally. Above is weekly chart of Tech Mahindra and above 840-850 we may see one side rally towards 900-950 in this counter in coming week. Support at 765. Hence, accumulate between 840-765 range for medium term point of view.

Those who wants to trade in Bitcoin they can learn from here.

Those who wants to use SAR technical indicator they can check from here.

Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on stocks for short to medium term. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


Market Outlook for Next week 05-10-2020 to 09-10-2020

Devendrasinh S. Chauhan

 Nifty-50

Weekly Chart of Nifty:-


On a weekly chart Nifty has retest the Long term trendline. Since last 10 Weeks market is trading near long term trendline but fail to sustain above it. This clearly indicates that there is strong fight between bulls and bears around this line. Hence, for coming week if Nifty starts trading above 11500 then we may see upside rally towards 11700-11750. And below 11400 we may see downside rally towards 11200-11150. 


Daily Chart of Nifty:-


On a Daily chart Nifty is closed between Strong Resistance Zone and Support Zone. Coming week will be very interesting from fresh breakout or breakdown point of view. Fresh move can be seen above 11600 and below 11170.

Option Chain of Nifty for Expiry on 08-10-2020:-



According to Option Chain data 11400 is make or break level for coming week. Because there is almost same amount of Open Interest in Call and Put. And strong resistance at 11500-11600 strike price with Highest open interest in Call. While at 11000-111200 strike price there is strong support with Highest Open interest in Put. Level of Daily chart and option chain almost match with Support and resistance point of view. Bigger range for Nifty for next week will be 11600-11150.


How to Trade in Nifty for Tomorrow:-

One can buy above 11450 with Stop Loss at 11385 for Target of 11470-11530.

One can short below 11365 with Stop Loss at 11420 for Target of 11315-11280.

Bank Nifty

Weekly Chart of Bank Nifty:-


On a weekly chart Bank Nifty is trading in range of 1000 point. And same will be continue in coming week also. Important levels are mentioned on chart from Support and Resistance point of view. We may see both side trading moves in Bank Nifty, and fresh upside rally can be seen only above 23500 and downside rally below 20500. Currently Bank Nifty closed at 22246 and next resistance is placed around 22500-22700. Hence, above 22200 bank nifty can test level of 22500-22700. And below 22000 it can test downside level of 21500-21000.

Daily Chart of Bank Nifty:-


On a Daily Chart Bank Nifty closed at 22246 and immediate resistance is placed around 22500-22700, and therefore Bank Nifty can test that level in positive market sentiments. However, below 22000 downside risk is placed around 21500-21700 and it can test that level in negative market sentiments. And above 22700 fresh upside rally towards 23000-23200 can be seen and below 21500 fresh downside rally towards 21000 can be seen.

Option Chain Analysis of Bank Nifty for Expiry on 08-10-2020:-


According to Option Chain data also range of Bank Nifty for Coming week is expected between 21000-22600 and same kind of structure is formed on daily chart also. As per Option chain data 22000 is make or break level of Bank Nifty. Above 22000 we may see upside level of 22500-22700 and below 22000 we may see level of 21500-21000. 


How to Trade in Bank Nifty for Tomorrow:-

One can buy above 22475 with Stop Loss at 22160 for Target of 22700-23100.

One can short below 21830 with Stop Loss at 22150 for Target of 21440-21200.



Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for Next Week. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).

Market Outlook for Next week 28-09-2020 to 01-10-2020

Devendrasinh S. Chauhan

  Nifty-50

Last Week Nifty did breakdown below strong support of 11370-11400 and closed at 11050. And for coming week small bounce back is expected in the range of 11200-11300 and from that range market may start falling and continue its downtrend rally towards 10700-10500. Last week price action clearly indicates that there is change in market trend from bullish to bearish. As long as sustain below 11350-11400 it will be remain negative.

Daily Chart of Nifty-50:-





On a Daily Chart Nifty has formed major trend reversal price action. And important levels are mentioned on chart. Now, as far as Nifty sustain below 11000 we may see downside rally and above 111200 range bound. And fresh upside rally only above 11600 which is difficult now. Hence, look for shorting opportunity at each up move.

Weekly Chart of Nifty-50:-




As per weekly chart Nifty fail to sustain above long term trendline and shown reversal exact from that line. Since last 3 to 4 week market struggle to sustain above but finally bears won the game and took control over the bulls. Hence, on a weekly basis also market fail to show positive sign for fresh rally. Follow sell on rise trading strategy for coming week. 

Option Chain Analysis of Nifty for Expiry of 01-10-2020:-





According to Option Chain data there is huge call writing in the range of 11000 to 11300 and therefore we may see reversal in Nifty from this range. And strong support in the range of 10800-10900 with highest put writing. In Nifty at each 100 point range there is Put writing of 10 Lac open interest and therefore we may see expansion in trading range of Nifty which may be minimum 100 points in the day. Currently call writers of 11000 strike price are in risk because nifty closed at 11050 that is above 11000 and there is 17 Lac open interest in 11000 Strike price, means that if on Monday nifty starts trading above 11050 then we may see short covering from 11000 Call writers and that rally may bring Nifty towards 11100. 

India VIX:-




Volatility Index is showing very volatility during the intraday session. Since last few days it is moving 5% to 10% during the day which is not good at all. As per my view VIX should remain below 20 for smooth trading moves and above 23-24 again big trading range can be expected. Put Call ratio at 1.30 which is good for bulls. 

How To Trade in Nifty for Tomorrow:-

One Can Buy Nifty in range of 10965-11020 with Stop Loss at 10915 for Target of 11123-11200.

One can Short Nifty below 10915 with Stop Loss at 10970 for Target of 10850-10800.    

(Probability of Buy entry is 70% and Short Entry is 30%)

Bank Nifty:-

Bank Nifty continuously showing downtrend on daily chart and weekly chart. Majority of Banking Stocks are showing downtrend. With downtrend in Banking Sector Nifty is also facing resistance and showing signal of downtrend. If Bank Nifty starts showing positive price action above 21500 then we may see some upward rally towards 22000 and below 20500 we may see downside rally towards 20000.

Daily Chart of Bank Nifty:-





On a Daily chart Bank Nifty has breached the important support of 21000. Hence, for coming week if Bank Nifty sustain above 21000 then we may see upside move towards 21500-22000. Currently Bank Nifty is in downtrend and therefore we may see sell on rise kind of price action on coming week. Combining option chain and Daily chart Bank Nifty may trade in the range of 21500-20500 for coming week. Fresh 500 Point rally can be seen once it breaks either 21500 on upside and 20500 on downside.

Weekly Chart of Bank Nifty:-



On a Weekly chart Bank Nifty at very very critical level of 20500. There is support of weekly trendline at 20500-20400. Hence, Bank Nifty has to sustain above 20500-20400 for any upside, otherwise we may see level of 19000-16000 in coming session. Not immediately but in coming 5-6 week. 

Option Chain Analysis of Bank Nifty for Expiry of 01-10-2020:-





According to Option Chain 21000 will be the make or break level for next week. Because at 21000 Strike Price there is Call writing of 7 Lac shares and last closing of Bank Nifty is at 20982 that is near to 21000. Hence, in coming session if Bank Nifty start trading above 21000 then we may see short covering move towards 21200-21500. Above 21000 there is strong resistance at 21500 and 22000 with highest call writing. On downside there is strong support at 20500-20000 with highest put writing. Hence, for coming week Bank Nifty may trade between 20500-21500. 


How To Trade in Bank Nifty for Tomorrow:-

One can Buy Bank Nifty in the range of 20750-20850 with Stop Loss at 20600 for Target of 21200.

One Can short Bank Nifty below 20600 with Stop Loss at 20750 for target of 20300-20200.

(Probability of Short Entry is 30% and Buy Entry is 70%)


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for Next Week. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


Secrets of Option Trading ("Hero & Hero" , "No To Zero")

Devendrasinh S. Chauhan

First let me make you clear about "Hero Or Hero". This principle is valid when you are trading option systematically, that does't mean that there is no loss yes there would be loss but it can be managed. Those who are trading option like gambling for them principle of "Hero Or Zero" is valid. If you are taking risk to the extent Rs.500 to Rs.1000 on expiry then we can say it is "Hero Or Zero" trade. Today whatever i am going to share you is all about systematic and pure planned option trading.

Gambling V/s Systematic Trading

"Option Trading" is only segment which can give you consistent profit with low risk, if you follow few rules and remain stick to that. It is completely based on Probability factor. Like other trading segments like Equity, Future this required proper planning and execution for that discipline is mandatory. Without discipline you can not generate consistency. 

It is pure planned game where in maximum time you have to spent on designing the strategy and then execution. Once you completed that then you only have to monitor your trade that's it. Now, you think that what's new because in all trade we have to do the same activity. Yes in all trade we follow the same step but here is secret which you may know but not experienced yet. While you are doing intraday trading in Equity and Future, are you sure about your end of the day outcome?. Only 50% probability for your estimated outcome. And there is 50% probability that your Stop loss get triggered, not only that again there is 70% probability that after hitting your Stop loss your trade hit your Target towards end of the day. And then what we say???... This only happens with me. Hahahahah... Right...?!! 

Now let's think why this happens with us?. Because we are chasing price where majority of traders are looking and operator are focusing on that price, majority of traders take position at breakout or breakdown point right, then what you think big players will allow you to take that profit, no not at all, they know very well that where we are going to take entry and what will be our Stop Loss, so they first take your Stop Loss and then hit your target. Again i am clearly saying that probability of such instance is 50%, i am not saying every time. But important point is that we have been cheated even though we have predicted everything well. So if we continue with same trading style then our 50% trades would be easily converted to loss by the operator. 

Operator V/s Day Trader

But if you have gone through Option Trading then your probability of losing trade is only 20% and that is not because of Stop Loss hunting but only in case of market sentiments changed. There is 0% probability of your Stop Loss hunting in option. Interesting right. More interesting is about to come, keep reading..๐Ÿ˜‡

Why we lose in trading ? Because of Fear and Greed both. Yes both are responsible for our maximum failure in trading. While in option there is only discipline No Fear No Greed. The beauty of Option Trading is that here you would be well aware about your maximum profit and loss in advance and then you are taking entry, while in Equity & Future we are not clear about maximum profit and loss and therefore we have to face Fear and Greed kind of situation.

Discipline Trader

And biggest benefit of Option Trading is that you can earn in any market structure whether it is trending or not. While in Equity and Future you only gain when market is trending and during sideways/range bound market chances of Stop Loss is high. 

It is know in market that you should have at least minimum 60%-70% accuracy level if you are Equity or Future trader, while in Option you can make consistent profit even at 30% accuracy level.

I hope you will be now clear about difference between Option Trading Vs Equity & Future.✅

What is Option Trading???

Basically both Option & Futures are designed for hedging instrument which are used by big market players to hedge their long term position in Equity. And traders like you and me use it as Trading Instrument. Hope you will be clear with what is Hedging?. It is nothing but using mask to protect from Corona. Hahahaha..!!! Just part of joke only.

Hedging means safeguarding probable loss of Equity. If market sentiments are negative then Fund house hedge through either shorting call option or buying put option for particular period OR for expiry. Similarly if sentiments are positive then they short put option or buy call option. So by doing this they maintain their portfolio healthy. But for us it is trading instrument so we have to just think for that point of view only.

Let's start Understanding the Secrets of option Trading. ๐Ÿ‘‡

"Option Trading" is purely probability based systematic trading. Higher the probability higher would be the profit and lower the probability lower would be the profit. At least you would be in profit. And only in case when market starts trading beyond your expected range or if there is sudden change in market sentiments then only you have to end up your trade in loss. But probability of such instance is very less say 10%-20% only. That much risk we have to take.

Before moving into that we have to clear all below points.

1.    You should be technically sound. Means you should have ability to identify the market trend.

2.    You should be well aware about the market structure and its probability. 

3.    You should be aware about the Impact of Volatility on Option Pricing. (I will discuss).

4.   You should be well aware about the maximum profit and loss at the time of designing your Option Strategy.

If you clear about above points then option trading will be very easy for you. And if you are not aware about it then please request you to do first paper trading and then only go live.

What is market structure?

Market Structure means market movement either up or down, etc. As per my experience i have listed four market structure and at any given point of time market will be in any of the four structure. Below are that four structure.

1.    Up Trend.

2.    Down Trend.

3.    Sideways/ Range Bound.

4.    Breakout / Breakdown.

Now our role start here. We have to keep ready our option strategy as per the Market Structure. There are many Option strategies are available. (I have shared book below in which all strategies are beautifully explained with example).

Below are the steps that you have to follow to design your Option Trading Strategy.

1.    Identify Market Trend. (Up, Down, Sideways).

2.    Identify market range. (Maximum Downside at Support, Maximum Upside at Resistance).

3.    Select Strike Price keeping in Mind Upper and Lower range. 

4.    Risk to Reward Ratio must be at least 1:3.

After following above step now you have to execute the trade and monitor the same. Those who are new in Option Market they only think from Option Buying point of view, means they either buy Call or Put but never think about shorting side and that is where maximum profit is. They all feel that Option is very cheaper and we can earn lot through buying Option either Put or Call, but in reality buying only Put or Call is one of the risky strategy in Option. 

There is some misunderstanding regarding margin requirement among the new trader. Many traders are in view that to sell option you have to pay higher margin up to Rs.1.25 Lac for 1 Lot of Nifty. But that is only when you are shorting naked Option, means if you trade Option selling with combination of Buying call option you can easily reduce the margin requirement from 1.25 Lac to 25K. Go through below example to understand it in detail. That is the main secret of Option Trading that nobody will tells you. 

See below image of margin calculation of Zerodha. I have shorted 2 Lots of Nifty and against that i have bought 2 Lots of Nifty. Now in this case i have saved Margin of 2.24 Lac. If you want to check the you can click here.


On a same way using such margin calculation (Depending upon your broker) you can design your strategy and take the advantage of margin.


Let's take a practical example to understand it.

On 21st Sep'20 Nifty did breakdown below 11500 in afternoon and at the end of the day closed at 11250. Considering above points i took entry when nifty started trading below 11470. My view was bearish for current expiry, and stop loss at 11500. Keeping in mind i have drafted below Option Strategy. (Note: You Need At Least 1Lac to 80K capital to execute best risk reward strategy). In below strategy capital requirement was 80K and margin used 55K.


Let me explain you what i did. My view was bearish and my stop loss was 11450-11500 on closing basis. Considering that i have selected above strike price to trade through option. An if you look at the expected expiry column you will find that my Maximum loss would be -1200 in case Nifty start trading above 11500, so i was safe till 11600. And according to my bearish view below 11400 there was unlimited profit. To design above strategy it's took too much time but i was ready before the entry.

In this Strategy my maximum loss was -1200 and profit is unlimited and investment of only Rs.55K. And today 22nd Sep'20 Nifty closed at 11153 and you can check what would be status of my trade today in Expected expiry column at least 23,000. So 40% return on investment in just 2 days. I expected expiry around 11200-11300 but market shown big downside move so my all target achieved. But just assume if Nifty closed at 11400 on 21-09-2020 even though i would be in profit.

If i have only bought naked 11500 Put option was trading around 100 and today closed at 325, then my profit would be Rs.16,800 (325-100=224*75). But in this case what would be my maximum loss if Nifty starts trading above 11550?. Loss would be -Rs.3,500. (100-50= 50*75). And of course your heart beats starts moving that's not considered here. If today Nifty starts trading above 11300 then also i would remain in profit.

Now, let me tell you how i selected above Strike Price. I have used probability ratio to predict the strike price. See below.

I shorted 2 Lot of 11600 Strike price because Nifty has resistance between 11575-11600, so probability of trading above 11600 was very less to 20% and therefore my winning probability is 80%. So i can get total premium of 11600 Call option till expiry.

Bought 11500 Call Option to protect my Stop Loss, in case market starts trading above 11500 then I can reduce loss of 11600 Call option to some extent. Probability before breakdown was 50% but after breakdown again 20% again here my winning probability is 80%.

Bought 11800 Call Option at 5 it was just to set off margin.๐Ÿ˜…๐Ÿ˜…. Because you can not short 2 Call option against 1 call option, otherwise you have to pay excess margin of at least 1L. So to set off margin requirement i have bought 11800 Call option. 

And Finally bought 12000 Put option at 504 when Nifty was trading around 11510 and only Rs.15/- premium i paid. See this is also very interesting thing that you have to follow. What i did here? By adding 12000 Put option i have indirectly Shorted Nifty Future. Understand ??. If you shorted Nifty Future directly you would have to pay margin of 1.30 Lac while i have did the same thing by buying put option at 37,000, i have saved margin.

Those who don't understand let me explain you in detail.



From Above table you may understand it quickly. In above table if i shorted Nifty Future on 21-9-2020 then i need margin of 1.3 Lac on which profit would be Rs. 24,600. And if I Bought 12000 Put at 505 then i have to pay premium of Rs.37,875 on which profit would be Rs.23,775. So this is also one strategy you can use while drafting option set up. 

Simply saying that if you starts Option Trading with systematic and organised manner then you can definitely beat the market. 

There are number of Strategies are available ready made according to your market view. If you are bullish then which strategy to follow, if you are bearish then what and if your view is neutral then what, all is available on social media and you can also refer to books. You can read books from my Google Drive. Click here. In this book you will find all option strategies which are commonly used by the option traders. 



Summary of Option Secrets:-

1.    Trade without Fear & Greed.
2.    High Return on Capital in very short period of time.
3.    Using combination of Option strike price, we can take get benefit of  margin.
4.    Focusing on liquid Stock or Index. Suggesting you to trade in Nifty and Bank Nifty.
5.    No Technical Indicator required (If you are clear about the trend). 
6.    Consistent profit with Low Accuracy say 30% only. In cash or future minimum 60% is must.
7.    Maximum profit or loss will be known to you before the trade. (Biggest Benefit).  


What else you need??..... Hahahahah....!!!!!!!!๐Ÿ˜€


Learn It, Master It and Then Beat It....

Please comment your views and suggestion in Comment section. 

Those who wants to trade in Bitcoin they can learn from here.

Those who wants to use SAR technical indicator they can check from here.


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above Post is for educational & learning purpose only)


Market Outlook for Next Week 21-09-2020 to 25-09-2020

Devendrasinh S. Chauhan

  Nifty-50

Last Week we have seen range bound trading in Nifty with trading range of 11380-11620 and closed at 11504. On a weekly chart Nifty is facing resistance around 11600 and struggling near long term trend line. And for coming session if nifty start trading below 11380 we may see downside rally towards 11200-11100. And for fresh up side Nifty has to give decisive closing above 11600.

Daily Chart of Nifty-50:-


On a Daily Chart Nifty has formed Resistance around 11550-11600 and support at 11350-11400. And we may see fresh upside above 11600 and fresh downside below 11350. As per Price action of Friday session it looks that market is ready for correction because there is continuous selling by FII/DII during last week and therefore trend may remain negative for coming week also. For coming week market may trade between 11350-11600 and fresh rally only above or below this level.

Weekly Chart of Nifty-50:-


As per weekly chart Nifty is facing perfect resistance at Long Term Trend Line. And therefore market is taking time in this zone. If Nifty fail to sustain above 11500 then we may see downside rally and above 11550-11600 we may see breakout above trendline and fresh rally may start from here. 

Option Chain Analysis of Nifty for Expiry of 17-09-2020:-



According to Option Chain data there is support at 11400 with 25 Lac Open Interest and if fail to sustain above 11400 then next support is placed at 11200-11000 with Highest Put writing for coming week. And strong resistance around 11500-11600 with massive call writing of 32 Lac and 34 Lac Open interest. Currently put writers of 11500 will be in risk if Market start trading below 11500 because there are huge put writers with 34 Lac Open Interest. And therefore for coming week 11500 will be make or break level for index.

India VIX:-


Volatility Index is trading around 20 since last one week indicating cautious trading move. Interesting thing is that during intraday session VIX is not reacting much. Like on Friday session we have seen big move on index but VIX closed in red. So in coming session we have to see how VIX is behaving with movement in Index.

How To Trade in Nifty for Tomorrow:-

One Can short in the Range of 11520-11500 with Stop Loss at 11600 for Target of 11450-11400.

Fresh short entry can be Initiated below 11450 with Stop Loss of 11500 for Target of 11400-11350.

One cay Buy above 11600 only With Stop Loss of 11550 for Target of 11650-11675.

(Probability of Buy entry is 30% and Short Entry is 70%)

Bank Nifty:-

Bank Nifty continuously showing downtrend on daily chart and weekly chart. Majority of Banking Stocks are showing downtrend and therefore it's look like there may be some bad news awaited. With downtrend in Banking Sector Nifty is also facing resistance and showing signal of downtrend. If Bank Nifty starts showing positive price action above 22500 then we may see some upward rally towards 23000 and below 22000 we may see downside rally towards 21500-21000.

Daily Chart of Bank Nifty:-


On a Daily chart Bank Nifty is showing chances of Breakdown below 22000 and may test level of 21000-20800 in coming trading session. And if sustain above 22500 then it may re-test resistance level of 23000. Fresh upside can be expected only above 23000 and fresh downside below 22000. 

Weekly Chart of Bank Nifty:-

On a Weekly chart also there is no much difference in Trading range, the same trading range can be expected for coming week that is between 23000 to 21000. And if remain between 22000-22500 then we may see expiry between this range only. 

Option Chain Analysis of Bank Nifty for Expiry of 17-09-2020:-


According to Option Chain data of Bank Nifty there is heavy call writing between 22500-23000 and therefore difficult to sustain above 22500 and on downside support is weak around 21500-22500. Below 22000 Put writers may starts unwinding their position and shift support level to 21000. And above 22500 we may see short covering rally towards 22800-23000. For coming week 22000 will be the make or break level for index.


How To Trade in Bank Nifty for Tomorrow:-

One can short between 22100-22000 range with Stop Loss of 22200 for Target of 21700-21800.

One can buy above 22450 with Stop Loss of 22300 for Target of 22500-22600-22700.

Fresh Short can be Initiate below 22000 with Stop Loss at 22100 for Target of 22800-22600.

(Probability of Short Entry is 80% and Buy Entry is 20%)


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for Next Week. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).



Nifty & Bank Nifty Prediction for Tomorrow 15-09-2020

Devendrasinh S. Chauhan

  Nifty-50

Today Nifty traded in the range from 11570 to 11370 with both side movement. Yesterday i have recommended short in the range of 11550-11600 and exactly from that level it has reversed towards 11400-11380. Still market is struggling between support and resistance and looking for clear cut direction. And therefore tomorrow also we may see range bound session if Nifty sustain between 11350-11550. 

Daily Chart of Nifty-50:-


As per Daily chart there is strong resistance between 11550-11600 range and support at 11400-11350. In the chart above there is box and if nifty start trading below 11350 then we may see downside rally towards 11200-11100. And if remain above 11400 then again it may try to test the level of 11550-11600.

Option Chain Analysis of Nifty for Expiry of 17-09-2020:-




According to Option chain analysis of Nifty There is massive Call writing at 11500-11600 strike price and hence difficult to sustain above that. On down side strong support at 11200-11300 zone. For coming session 11400 would be make or break level for index. If Nifty sustain above 11400 then we may see upside movement towards 11500-11500 and below 11400 we may see 11350-1300 level.

India VIX:-


Today After sudden fall in Nifty Volatility Index moved high by 2% which is not positive sign for market in coming session. And if VIX remain above 20 we may see such both side movement during intra day session. Put Call ratio at 1.37 which is at comfortable level. 

How To Trade in Nifty for Tomorrow:-

One Can short Nifty between 11450-11500 in case of Pullback with Stop Loss at 11550 for Target of 11400-11350-11300.

Fresh Short can be Initiated below 11350 with Stop Loss at 11400 for Target of 11270-11250-11200.

Fresh Buy only Above 11600.


Bank Nifty:-

Bank Nifty continue with its downtrend and took support today around 22000 which is very important support for index. In Bank Nifty also i have recommended to short between 22600-22700 and exactly from that range it reversed to 22000. Hahahah...!!!. Bank Nifty may continue its downtrend journey in coming session also if fail to sustain above 22500-22700.

Daily Chart of Bank Nifty:-



Bank Nifty is struggling between 23000-22000 as bigger range. And therefore it has reversal zone of 22500-22700 on upper side and 22000-22200 on lower side. Important levels are mentioned on chart.
For coming session if Bank Nifty start trading below 22000 then we may see strong downside rally towards 21500-21000 and fresh upward rally only above 22700-23000.


Option Chain Analysis of Bank Nifty for Expiry of 17-09-2020:-


As per Bank Nifty Option chain there is strong resistance at 23000-23500 with highest call writing. And strong support at 22000-22200 with highest put writing. Currently market is closed below 22500 and put writers of 22500 are now trapped with 6 Lac open interest. And therefore in coming session 22500 will act as strong resistance for index.


How To Trade in Bank Nifty for Tomorrow:-

One can short Bank Nifty Between  22500-22700 in case of pullback with Stop Loss at 22800 for Target of 22500-22300-22000.

And fresh short can be Initiated below 22000 with Stop Loss at 22200 for Target of 21500-21200.

No Buy Trade for Tomorrow.   


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for tomorrow. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).




Nifty & Bank Nifty Prediction for Next Week 14-09-20 to 18-09-20

Devendrasinh S. Chauhan

 Nifty-50

Last week Market traded in very short range of 11493-11185 and looking for direction. During intra day also we notice that market is struggling to sustain above 11500 but fail. Hence, for coming week also 11500 play as a major resistance for Index and above that we may see upside movement. And on lower side 111200-11100 is playing role of good support for index and therefore the moment market stats trading below 11100 we may see downside movement.

Weekly Chart of Nifty-50:-


On a weekly chart also we can see that how Nifty is struggling near to Long term Trend-line and fail to close above. On a weekly basis this trendline will play role of Resistance till Nifty remain below that line. For coming week also the bigger range would be 11100-11500 and we may see range bound trading session. But decisive breakout above 11500 or below 11100 can give direction to market. 

Option Chain Analysis of Nifty for Expiry of 17-09-2020:-



According to Option Chain data Strong Resistance in the range of 11500-11600 with highest call writing and support at 11200-11400 range with Highest Put writing. And that's why i am expecting range of 11100-11500 for next week. 

India VIX:-


Volatility Index is also trading near to 20 which is still high and if Nifty start trading above 11500 then we may see fall in VIX and if starts trading below 11100 then we may see rise in VIX. Put call ratio at 1.50 which is at high point and that is why we may see profit booking at upper side. 


How To Trade in Nifty for Tomorrow:-

Currently Market is in No Trade zone as far as it remain in the range of 11550-11200, and therefore contra trade is suggested. 

Buy Around 11200-11100 range with Stop Loss of 11050 for Target of 11300-11450.

Sell Around 11550-11600 range with Stop Loss of 11650 for Target of 11400-11300.


Bank Nifty:-

Bank Nifty is  showing weakness on weekly basis and facing resistance in the zone of 23000-22500 with strong support at 22200. Range of Bank Nifty is very clear with level to level with support and resistance in each 500 point gap. We are showing strength in Nifty that is just because of Reliance otherwise Nifty would be trading like Bank Nifty. Such combination is not good for trading point of view because it is not showing real picture of market. And therefore i would suggest to day trader to trade in Bank Nifty instead of Nifty. 

Weekly Chart of Bank Nifty:-


As per weekly chart we can clearly see how Bank Nifty is facing resistance near 22500-23000 zone. There is bearish candle since last two weeks which is not positive sign for market. And if we want to see upward rally then participation of Bank Nifty is must required. Majority of Private Sector banks have shown negative price action last week. And therefore next week would be very interesting because we may see that Whether Nifty push Bank Nifty Up or Bank Nifty push Nifty down.

According to weekly chart Trading range would be 22000-23000 and decisive move above 23600 on upside and 21000 on downside.


Option Chain Analysis of Bank Nifty for Expiry of 17-09-2020:-


Option Chain of Bank Nifty is reflection of Weekly chart with Resistance at 23000-23500 and support at 21500-22000. Hence, we may see Bank Nifty in bigger range of 21500-23500. Once it starts trading above 23500 then we may see upside movement towards 23700-24000. And on downside below 22000 we may see downside rally towards 21500.

How To Trade in Bank Nifty for Tomorrow:-

Short Bank Nifty in the range of 22600-22700 for Target of 22500-22400.

Buy Bank Nifty in the range of 22200-22000 for Target of 22300-22400-22500.


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for tomorrow. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


Nifty & Bank Nifty Prediction for Tomorrow 08-09-2020

Devendrasinh S. Chauhan

 Nifty-50

Today Nifty traded in very low range between 11375-11250 with highly volatile moves and closed at 11355. Currently market is behaving mainly from Option Oriented. No clear cut direction during Intra day moves. In such market chances of Stop Loss is very high. Market may behave like this unless give decisive breakdown or breakout. Majority day traders are being trapped by Big players, the moment you see breakdown and go for shot and immediately in second candle your stop loss will be beaten. That is how market behaving now a days. So be cautious when volatility is high. There is pure index management is going on, you can see when Nifty just started falling below 11300 at the same time Reliance started moving up at 02:45 PM from 2064 to 2105. Can you answer me why?? If you have answer then please let me know in comment box.

Daily Chart of Nifty-50:-


There is no much change in Daily chart. Since last two days it is sustaining between 11400-11300 with both side moves. Only point which is required to be noted is that Nifty is closing below 20 SMA since last two days, which is negative. For tomorrow again Nifty may remain in same range between 11400-11300.

Option Chain Analysis of Nifty for Expiry of 10-09-2020:-


According to Option chain data 11300 is make or break level of index and that we have seen today, how Nifty traded near to 11300. And good support at 11000-11200 with highest put writing. And resistance around 11400-11500 with highest call writing. 

India VIX:-


Volatility Index remain stable at 22 that is above 20 which is negative. However, Put Call ratio 1.23 which indicates that market is neutral. 

How To Trade in Nifty for Tomorrow:-

Considering Today's volatile move, it is assumed that tomorrow market may remain in same range, and that happens then there will be no trade for tomorrow.

In case Nifty sustain below 11300-11270 then one can short below 11270 with Stop Loss of 11300-11330 for target of 11220-11200.

No Buy for Tomorrow.


Bank Nifty:-

Bank Nifty also traded in very volatile moves between 22700-23050 with both side movement and closed at 22945 that is below 23000. Here also market is waiting for clear cut direction. There is tight fighting is going on between bulls and bears and we may see directional move after decisive breakout or breakdown.

Daily Chart of Bank Nifty:-


On a Daily char Bank Nifty is bearish with Lower Low and Lower High chart formation. Hence, each up side will be treated as selling opportunity. According to chart if Bank Nifty fail to sustain above 23500 then we may see further downside towards 22400-22700 zone in coming trading session.

Option Chain Analysis of Bank Nifty for Expiry of 10-09-2020:-


According to Option Chain of Bank Nifty there is support at 22500-23000 range and therefore we are seeing bounce from lower level to 23000. And strong resistance around 23500-24000 zone. Once bank nifty starts trading above 23500 then only we can see short covering rally otherwise below 23000 it may trade in range between 23000-22500.

How To Trade in Bank Nifty for Tomorrow:-

One can short Bank Nifty below 22700 with Stop Loss at 23000 for Target of 22600-22500

No buy trade for tomorrow.


Thank You..

Happy Trading.
"Learn & Earn"...!!



(Disclaimers:- Above is my personal view on market for tomorrow. It is neither Paid service nor tip. Just for educational purpose only. Take your own decision before any trade).


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