23/05/2021-- Restarting my Blog

Hello All, 

Happy to announce that I will be restarting my blog from today. I will be sharing all the option trades i would be taking in Nifty Weekly options. 

For those who dont know me a small intro:

I am krishnan from Chennai\Mysore , Full time trader in Nifty options (Long Only). Earlier i was trading in Nifty Futures and then migrated to Banknifty options (weekly ). I found Banknifty to be very volatile and risky, hence did some soulwork and came back to Nifty. 

Objective of this blog:

I would like to share my intra trades which i take in nifty options daily, so that we can learn together and also this is a best journal to be maintained. 

Looking forward for your support. 

Thank you and have a great day. 

Trading as Profession -- My perspective

The life of the trader is so fascinating ... this profession of trading doesn't have any prescribed "so called syllabus" but still there are many "students" trying to hang onto it..expecting to excel with merit on this subject..in this process, the syllabus is "self discovered" on the journey, which makes it to be "learning on the go"...

Now this "self-discovered" syllabus often has its own style, which need not match with other(s) "self discovered" syllabus, but still the journey can go "along" with or without "others". So can any other profession has such kind of "open system", i fear there is none.

Here there is only "illusionary" Rules, which is set by the "student" itself on the Go. There is no "authority" apart from the market itself to validate the rules. Will be continued..

17-06-2015

Nifty after closing above 8000, gave a good rally and opened with good gap up today and got consolidated within previous day high range, which brought in the bullishness to it. Post lunch there was a good follow up to move above 8100, to make a new day high at 8137.

Previous resistance at 8141 and also good sloping UTL gave a decent resistance for this rise and nifty closed just below 8100. Broader market was very good today with 1024 advances to 445 declines.

Nifty has resistance at 8125-41 zone and support at 8064-33, need to see tomorrow's price action at these critical juncture.

FII -- Even today, covered their longs and shorts in futures and good addition in Index call longs today.

Clients -- Good addition in index futures on long side and in option front they are looking for a down day.

PRO -- Good Addition in longs and shorts and in options front they are looking for a green day.

DII -- Huge addition in longs today from DII

Again we have a huge back up for longs from many of our participants yesterday and today. So the major trend is slowly changing gears to longs, but at the same time can't ignore the sharp falls in between, since FII's have not yet started to buy either in cash nor in Futures.

Expecting a Dip again towards 8000 and will look for any buying interest from FII.. till then I would sell the rise and buy the dips.

Happy trading

12-06-2015

Nifty Opened flat to negative and went down first to make a low at 7940 and was inching up slowly but steadily. Today's intra Price action was completely Neutral to Positive and EOD closed near day's high, suggesting a small pause in downtrend unless again on Monday today's low is taken out. Weekly close was below to its Low ema but almost 100 points below to it, so a bounce is expected to make some "catch up".

Broader market was weak with 867 declines to 593 advances for the day. Today FII are net sellers in cash market and DII are net buyers

Vix Range - 8246---7720

Option Open Interest -- 7800--8200 (immediate range)

FII -- Have added longs and shorts today in index futures, with net longs Decreased by 10,546. Longs to shorts is neck to neck now..

Clients -- Have covered their shorts and longs today, with net longs up by 6671 contracts.

Pro -- Added both longs and shorts today, with net shorts up by 7970 contracts.

DII -- Covered their shorts and added longs, with net shorts down by 11,845 contracts.

FII covering another 11K contracts or good addition of shorts now on will change the proposition again to Net shorts. Client have added huge position on call longs from yesterday, this is the factor to be watched for. while FII have loaded their guns with long Puts from the start of the series. May be they are using as hedge, they seem not to be covering at all.

Net to Net, looks like there is a bounce next week, but the sustainability of the same is the Serious question to be asked.

Happy Weekend

11-06-2015

Nifty Opened with huge gap up and above Previous day high and also the strong resistance of 8152. Sad part was it couldn't sustain at the higher price and was sliding all the way below to 8000. Finally closed at 7965.35 with loss of huge 159 points.

Break-out point of 10-06-2015 8115 was taken out in a flash, which alerted the sell off. Now since it has closed below 8000 which is the key reference number for this bull run; bulls need to come back above this number as soon as possible, else bears are going to run the show for some more days or even months.

Yesterday the closing was very positive gave the impression of morning star, but today it has wiped out everything. Since tomorrow is weekly closing, it needs to close above 8102 (developing - if there is new low tom this number will change) which is weekly low EMA,crucial factor. Last week on Friday, Nifty went all the way to then weekly low ema of 8172 but at EOD closed below to it suggesting more falls this week, now again the same thing can repeat or will it close above it? need to watch this tomorrow. 

FII -- Today there is some buying and selling unlike yesterday; both longs and shorts are added up; Net longs up by 2735 Contracts

Clients -- Same like FII, both longs and shorts added up, net longs up by 8836 Contracts

Pro -- Even they have added longs and shorts; Net shorts 33,170 contracts.

DII -- Taken longs and squared some of their shorts; Net Shorts 26,759 Contracts.

FII and Clients both are seeing a two way route tomorrow. since today was a huge day, tomorrow can be a consolidation day moving both sides, unless there is any global pressure to sell off.

Key Level for tomorrow: 8000-8008

Happy trading.

10-06-2015

Nifty opened flat to positive note; thanks to global triggers which saved it from gap down open. It went up breaking previous day high (Yesterday's EOD candle was DOJI) bringing in buyers and short covering rally.

Nifty was moving in an around 8100 forming a "barbed wire" formation. once the consolidation was over, it moved past 8115 which was acting as good resistance for half a day to touch a new day high at 8152.

8152-60 zone is a strong resistance area to be watched out for tomorrow. In my weekly post i had mentioned (2nd value area is not so clear, we mite have a re work there, price can bounce off to 8350-80 NF to make some adjustment for another sell off..) now since we are again back above VAL, there is higher probability for the above to happen.

FII - Have covered their longs and shorts today in Futures;net longs up by 2512 contracts

Clients - Have also covered their longs and short; net longs up by 9674 contracts

Pro - Have covered their longs and gone short; net shorts 17636 contracts

DII - Covered their longs and no change in Short position; net shorts 30722

So today's rally is completely short covering only no actual buying took place. This is like moving into thick air, more turbulence ahead! Unless we see some buying from now on, this rally will keep seeing ups and downs.

Today's close is positive next two days follow up is needed and weekly closing on friday above 8117 will bring pause to the downtrend. TIll then, be cautious and keep trailing with strict stop

Happy Trading

09-06-2015

Nifty opened flat to negative below previous day's VAL. It went up to test the VAL and got rejected firmly. It was trading in a narrow range 8015-8050 and kept its decision to break 8000 or not in "pending" mode. Should be cleared tomorrow.

Broader market is still under pressure with 920 declines to 551 advances. As long as nifty is trading below to its 5 week low moving average, the trend is down but chances for bounces are many, since many of the indicators would be in their respective oversold zones. Need to be very cautious on any bounces.

VIX range for this series : -  8325---7720

Today 8033-39 point of control in NF, need to see the price action tomorrow at this zone.

FII - Covered their shorts today and gone longs in Index futures, but they are still in bear mood in options

Clients - Taken both sides today in Index futures and they are long in Options

DII -- Covered both sides today and cash buying...

PRO -- Covered their longs and taken shorts in index futures and Options front they are bears still.

I am expecting a short term low tomorrow or its already done today. More clarity should emerge looking at tomorrow Price action. So all in all expecting a very good trading day tomorrow.

8000 is becoming a Laxman Rekha...

Happy Trading.

8th to 12th of June 2015

The above 15 min chart is from 1st of June to 05th of June. Why I have posted this chart is Pictures speak more, look at the consolidation happened from 3rd of June through 5th. 8137 was a strong POC.

Now the current week had a open below the POC and gone past VAL too which is signalling more sell off. To top it, we are trading below 5 week low ema, which is again very bearish.

There can be bounces all the way, since we are below to weekly low ema, treat them as opp to sell. Unless we get any close above 8107-110

PS: 2nd value area is not so clear, we mite have a re work there, price can bounce off to 8350-80 NF to make some adjustment for another sell off..

Happy Trading

03-06-2015

Nifty selling continued even today, opened gap down and started to drift below 8200 and kept on going till it found some bottom at 8094 and FII cash figures is the proof for it.

Nifty is comfortably now staying below previous weeks 5 Low ema (8232) and also below its filter. So a bounce towards developing low ema is not ruled out, which is at present 8186 which is also today VAH zone. Tomorrow's price action at or around 8186 should be noted.

VIX shot up 4% today bringing more volatility to our markets, closed at 17.50. The range is getting more interesting, 8000 which is the strong support as per Option table and vix is hinting at 7786---8485..

Broader market was very bad even today with 1292 declines to 224 advances.

FII -- Covering their longs and taking shorts continued today too, but todays addition is less compared to yesterday :) In options they are continuing to buy puts, so any rise will not sustain.

Clients -- They dint cover the longs which they took yesterday, instead they have added some more and they are covering their huge shorts which they have accumulated during friday and monday. So looks like, they are waiting for the bounce to unload this.

DII -- Added some more longs and today they have covered their shorts.. so looking for a bounce?

PRO -- These guys are just adding in both sides from past three days with more bias on downside.

So, now clearly FII's are turning out to be bears for sometime. selling in cash and in futures, clearly indicates a trending moves.. Clients are holding on to longs, either they will unload it at any bounce or are they looking for some trending upmove ahead? will need to watch this. so some kind of technical bounce is expected from tomorrow.

Happy trading

02-06-2015

Nifty Opened flat today and from the word go, it had selling pressure. Being event day today and also 3rd day of the new series, nifty witnessed huge range today (8445--8226). At end of the day, lost 197 points to get close just above 8200.

Broader market was very bad with 1197 declines to 287 advances. As Option Open interest, we can see 8000 is getting the base and 9000 the roof, so a huge range is getting built up.

VIX range is getting interesting -- 8584---7889 (So again, doors getting opened below 8000)

As per option chain, look like 8110-15 could be tested out in coming days.

FII -- Covered their longs today badly and taken up huge shorts today in Index futures, net they are still longs.

Clients -- Covered their shorts today and taken huge longs, net they are still short, on options side also they have taken good long exposure.

DII -- Taken small longs and very small shorts in index futures

Pro -- Taken both long and shorts today in index futures, net they are still short.

FII's have taken the beating today, forced to cover their longs and go short. Clients have done a remarkable job, tomorrow they are hinting for a range bound with green bias, lets c if they rock again.

happy trading.

01-06-2015

Nifty opened with a small gap down, but immediately went to test PDH and was trading above it for most part of the day. last one and half hour saw some selling pressure which took Nifty below PDH and also closed below its VAH and POC, which is not a good sign. Tomorrow being a "news/event" day; Bank nifty could have some wild swings, so trading in NIFTY needs to be a cautious one.

VIX range --- 8799 -- 8068

Today was second trading day of this new series and tomorrow is the third day, which is also an event day, so more clarity should emerge from tomorrow's EOD report. As of now, lets see how FII and others are positioning themselves.

FII -- After a huge buying on friday, today they continued to buy Index future and also entered some shorts, so they are expecting two way movement mostly. Cleverly they have sold options both sides.

Clients -- After huge short on friday, today they have added small longs to Index futures along with very negligible shorts. So they are expecting small rise big fall. Cleverly they too have sold both sides.

DII -- Friday they have added longs, today they have covered some of it and added shorts in Index futures.

Pro -- Addition seen on both sides in index futures but they are clearly seeing a downside movement based on their shorts calls.

Looks like all the parties are clueless still on the direction nifty can take tomorrow. So till the event is over and clear direction is seen, positional traders need to be cautious. Intra-day traders can use this volatility to their advantage with proper money management rules.

Happy Trading. 

29-05-2015

Nifty opened flat and within first half an hour +50 points was seen  and nifty went on to break 8400 and tested the earlier support turned resistance zone at 8410-11 and was consolidating in a small band 8418-8400 for entire part of the day. Post lunch, there was dip below 8400, soon buyers came in to take nifty again above 8400 and at Days high at 8444.

Early part of the day, VIX was moving up and post lunch session it cooled off completely. Looks like, RBI rate cut is already getting factored in.

Broader Market was positive with 858 advances to 613 declines. Since today was the first trading day in the new series, we need to wait at-least for 3 trading days to gauge the market sentiments.

VIX Range -- 8816---8052 (so slowly 8000 is gaining strength)

FII -- Huge buying in cash and futures, clearly they are seeing some trend day ahead.
DII -- Huge selling in cash and Longs in futures; so they are sensing some top ahead. Need to be cautious now. Remember, they are longs from 7997, sitting on huge profits.
Clients -- Huge Short position in index futures and Options. clearly going against FII's
PRO -- Good short build up and small long build up too. They are still net longs.

With todays EOD data, its clearly visible that Clients and DII are seeing a short term top ahead, but FII's are clearly seeing very strong green days ahead. As I have already mentioned need to wait for 3 days to understand this data more clearly.

If your longs, keep trailing and ride the trend.. but don't forget to book gain at regular interval.

happy weekend

28-05-2015

Nifty Opened with gap up and got resisted immediately at 8360; we had a strong resistance at 8355-60 zone for last few days. Moment 8308 broke, it went to test the earlier low at 8278. Yesterday after looking at EOD Open interest report, got a clue to sell on rise and today we had the perfect sell set up at open.

Last half an hour there was good short covering rally to bring Nifty back to 8300. 8300 PUT had strong support in this series, so writers made sure nifty closes above 8300. It closed at 8319. Broader market was weak with 633 advances to 819 Declines for the day.

From tomorrow (29th of May) June series will start with 800 point range 8000-8800. Open interest is still young, need at-least 3 days of trading to gauge the sense of writers interest.

INDIA VIX Range for this series -- 8714---7924

Since today is expiry, most of the contracts were covered by all the participants, hence will not look into FII/client OI today..

On general terms:

FII -- are holding net shorts in index Fut
DII -- are holding net shorts in index Fut
Clients -- are holding net longs in index Fut
PRO --are holding net longs in index Fut

happy trading

27-05-2015

Nifty opened with a huge gap due to global factors at 8302.75 and went to touch the low of 8277.95 and recovered swiftly above 8300 and got consolidated in the band of 8308-8333. PDC (previous day Close) was giving the initial resistance and range low was acting as good support for entire day so actual trading band was from 8343-8308.

Yesterday, Option Table Open Interest, gave us a slight hint of Price breaking 8300 (profit booking was seen at 8500 CE levels today and short covering was seen in 8300 PE, may be a dip below 8300 is not ruled out. )

Broader market was weak with 648 advances to 818 declines for the day. Since tomorrow is expiry for May contract, most of the technical's wont work during last one hour :) so keep your stops handy and trade with extreme caution. 

Expiry range as per INDIA VIX -- 8410 -- 8259

FII -- Have added Longs and shorts in Index futures with more bias on downside.
Clients -- Have added longs and shorts in Index futures
DII -- Have added small longs and no change in shorts
Pro -- Have added longs and covered their shorts.

Again similar story unfolding, range-bound day with Negative bias... 

Happy Trading

26-05-2015

Nifty Opened with a small gap up but was soon got sold off. In my weekend post, I had suggested "Need to watch out for any buying interest here(8363-50), else next drop can be to 8300-8280 zone which puts NIFTY in negative trajectory." 

Nifty took the support at 8320 which is also a major support as per Option table Open interest and closed at 8339.35. Broader market was weak with 574 advances to 883 declines for the day. Since we are just 2 day ahead of expiry, trade with extreme caution. 

From Option table still the range is 8500-8300. profit booking was seen at 8500 CE levels today and short covering was seen in 8300 PE, may be a dip below 8300 is not ruled out. 

FII -- have added huge longs and shorts in index futures today and also good addition in Index calls. Expecting a bounce tomorrow.
Clients -- Have added small Longs and shorts in Index Futures and both Long calls and puts. But still they are net short.
DII -- Have added shorts today and covered their longs.
Pro -- Have added both Long and short today.

So clearly today majority have taken both side bets, so expecting a range bound day with positive bias, unless 8320 (today's low) is taken out with volumes. 

Happy Trading

25-05-2015

Today Nifty opened with gap down and was resisted first half of the day at Range high. It was trading in a narrow band of 8413-8441 for almost first half of the day. Post 12.30 we saw break down at range low and made new low at 8364.

On our weekend post, we had suggested that, nifty breaking the trend-line and staying below approx 8420-10 could bring it to the demand zone at 8363-50 and today's low was exact at 8364. We need confirmation of buying tomorrow, else bears will push the price till 8300.

8300-8500 is the range clearly visible from Open interest table now for this expiry. Today's short covering in 8400 Put suggesting some more downside possible.

FII -- Have added small longs today and covered some of their shorts. Net they are long now in index futures.
DII -- Covered their longs and they are still net shorts
Clients -- Have covered their longs and taken shorts and now client's net open interest is negative.
Pro -- Added longs and covered their shorts and net they are longs.

Still Nifty is under bears grip. Longs need to be cautious from now on.

happy trading

Next week -- NIFTY

The Zones, which I have marked are to me are good demand zones. Trend-line which i have drawn holds the key for Monday.

Breaking the trend-line and staying below approx 8420-10 can surely bring NIFTY to 8363-50 zone in fast action. Need to watch out for any buying interest here, else next drop can be to 8300-8280 zone which puts NIFTY in negative trajectory. 

22-05-2015

Nifty opened with a small positive gap and consolidated in the 8440-8420 zone for one hour and gave break out above previous day high and rallied strongly to reach the day high at 8489.55 backed with SBI results. After the SBI result was announced, profit booking took nifty back to the break out point at 8440. Broader market was weak with 625 advances to 840 declines. Time to be cautious with longs.

Today's Price action was very positive till first part of the day, second half was choppy and last hour from 2 PM looks negative. Monday's open and first hour should reveal more.

Now Lets Look at how Open interest is aligned:

FII -- Have added huge longs and shorts today and their net open interest have again become positive. Still no covering seen in PUTs.
DII -- Holding their shorts and taken small longs today.
Clients -- Covered their longs and taken huge shorts today; still net open interest is positive but inching towards negative zone.
Pro -- Added longs and covered their shorts and net OI is positive.

Clients are slowing turning bearish and FII are turning bullish; the game of expiry will start from Monday. 

Happy weekend! 

20-05-2015

Nifty Opened with Gap up and went up again to 8400 zone and stayed there for entire day. NIFTY was trading between 8440-8400 entire part of the day, is this some kind of consolidation at higher levels or distribution will be known only after the price confirms it. Nifty has gained 440+ points from the recent lows of 7997 hence fresh buying needs to be taken only with proper stop-loss.  

yesterday (19th) sell off at the last hour was ignored completely in today's price action, when NIFTY firmly broke the 19th High. Now NIFTY has given 3 consecutive close above 200 DMA; which is a good sign for bulls. Broader Market today was Positive with 758 advances and 718 declines for the day.

Now Lets Look at how Open interest is aligned:

FII -- They have turned Buyers and their NET open interest has come back again to green. Today they have added 40K Long contract and 3K shorts in Futures and added Calls too. so clearly one more green day tomorrow ??

DII -- They have also added longs to their basket today; but they are still net short. 

Clients -- They started to turn negative; added huge puts and shorted around 19K in Futures.

PRO -- They have covered their longs and shorts today, no fresh addition seen. They are still Net short 

So by going with FII data; they are becoming bullish again at the zone, where many are thinking its the top..so who is clever now? wait and watch!! 

19-05-2015

Nifty Opened with Gap down and went to test the earlier resistance at 8333. Buyers took NIFTY above 8400 but was not able to sustain there; fell off sharply again to the support region of 8334-40 and closed at 8365.65 with loss of 8 points. 

Last week close gave us a weekly "pause" in the downtrend and today sell on rise got active; signalling strong resistance above @8427-30 zone. so again, we are entering buy on dip and sell on rise, as long as nifty stays above 8200. The range now is 8213---8430 Broader Market was slightly positive with 773 Advances and 703 Declines for the day. 

Now Lets Look at how Open interest is aligned:

FII -- Are still net "short" in index futures. Today they have gone longs 
DII -- Are still net "short" in index futures. Today they have covered their longs and took some shorts.
Client -- Are still net "Longs" in index futures. Today they have covered both longs and shorts.
PRO -- Are still net "short" in index futures. Today they have covered longs and took some shorts.

clearly FII/DII/PRO are holding net shorts and Clients are longs. If this doesn't change, MAY expiry can be Negative.