Thursday, 8 March 2018

NIFTY LOW FORMATION

The weekly low formation in nifty during February  1st week to 4th week was  10735,10300,10290,10439. 

March I week itself  the  low formation has breached all the above lows and formed a new low of 10155. So now all these numbers act as stiff resistance.

That is the reason I mention reaching 10437 is tough. I even suggested writing April CEs beyond 10500.

Do not get trapped in to  CEs.  Now PEs below 10000 will start eroding fast as the index management will try to float between 10155-10290/300.

Be long above 10300 and be short below 10155. DO some home work to know how much bottom is possible from 10155. Use previous months data and arrive  at bottom. 

Options trade is an art. More practice leads to perfection! It is simple to say, but simpler if you start practicing! Give it a try!!






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