TARGETS ACHIEVED: 7265 and 7350
Today it was Diwali day for traders as “stocks rocket ho gaye”. Nifty after many months gave a strong gap up of more than 90 points. Advance/Decline ratio was almost 9:1 and it was one of the best in recent times. Nifty finally closed on my upside target 7350 which i mentioned two days back at Relationship status: “Complicated” . But interestingly Nifty has also closed over my both resistance levels 7265 n 7363 which i mentioned yesterday in Nifty approaching upside target . So now the medium term outlook is surely changed to a rally but its could be just a short covering rally also. Confirmation can only above 8200. As a investor and trader we shouldnt wait for the confirmation level and atleast take this rally as a opportunity to cover losses which we made during high volatility in last two expiry. So now we should be biased on the long trades and my near term target is 7440
Net Payout on premium buy buying 7050 CE and 6900 PE was 239. Today we closed 7050 CE at Rs.360. So if you guys booked profit on this call you net profit is: 360-239=Rs.121/Lot.
And now we are still holding 6900 PE whose cost is Nil now as we have already booked profit on the strategy. So to be on safer side Hold 6900 PE.
Buy 7400 CE and Sell 7600 CE= Net Payout is 48.95-123.80= 74.85
So my cost of strategy is 74.85/lot
We recommend to book profit on 7400 CE on my target 7440.
For any queries feel free to contact me by replying to this post.