Nifty Futures Trading

Czar · #**8991** 24th July 2008, 09:37 PM

Quote:

Originally Posted by tsunil4u

whenever in a confirmed trend, then news just pour in to support that trend..

RIL results InLINE
Inflation ROC slowing - this week 11.89% vs 11.91%
LEFT no longer left with ruling govt
monsoon revival's reports

It is said that all major companies prepare 3 balance sheets, 1 the true 1 & the other 2 for the operator, 1 good & 1 bad, depending on markets...

tsunil4u · #**8992** 25th July 2008, 08:42 AM

my little advice for those interested in positional trading (especially contra positional trading):

First of all, if one decides to go short (or buy put) when the market in an uptrend, for example, then one should not take such position only because of emotional reasons that market had gone up a lot, it's over-bought, etc. Yes, these are also important, but they are secondary - they will not give you an idea of entry point.
ONLY CHART-READING & STUDYING will provide you with a level to enter a positional trade (contra or otherwise); and also with a reasonable SL.

These important levels are known as RSR (resistance-support-resistance) levels. On charts, they show that they do not break easily without meaningful reaction - sort of "lakshman rekha". In other words, they act as very strong support while coming down and as resistance, while coming up.
Usually, these are round figure nos. with +/- 15pts. - but not in every case, as chart will tell you.

And positional trading does not mean that you should have a 100 pt SL from your entry level - let only the chart say..

I'll give two recent instances:
When Nifty SPot was near 3800, I had bought a call option - not because it had fallen much, oversold, etc.. no, these are secondary - charts told me that 3775 is a very good RSR level. (I had also posted about this level). So, I had kept my SL below 3775 (in options, one can keep a bit comfy round figure of 3750)
Yesterday, I had mentioned about 4515-4535 band resistance. This was another good RSR level, as per the charts, which I used along with some indicators like over-bought, downward sloping line (from Jan peak), profit-booking time, etc.... I had bought Put option, with SL above 4550 (comfy, as per charts - 4570)....

Contra trend trade is very risky, but not unreasonable - if you combine it with good/reasonable entry levels (and not just emotions), then it can be rewarding...
For finding a good RSR level, one should have intraday charts beginning from previous month (sometimes last 2 months) and not just EOD chart.
And yes, never average your loosing trade - if you dont have stomach to bear initial losses (may or may not arise), I would advise to use OPTIONS, where you know from beginning what will be your limited maximum loss, and you have time till expiry to let your trade go through. Also, going for half of your normal quantity (which you trade with for intraday trading) is advisable.

This is not intended for those who have just started trading nifty, or those who have just begin to learn/read/comprehend charts....
This is for people like my member-friend Lalith who realise the risk-reward in a contra-trend positional trade, and wish to add something to their bread-&-butter intraday trading.

I again stress - positional trading should be done sometimes along with intraday trading, but contra-trend positional trading is very risky (but rewards may be higher sometimes, if your entry level is good).

tsunil4u · #**8993** 25th July 2008, 08:57 AM

NIFTY SPOT LEVELS FOR TODAY'S TRADING

Profit-booking, which started yesterday, seems to continue today also - thanks to global markets. (yesterday's decent good local news might be ignored... let's see)

No point in giving resistance levels, as today's support levels will come into picture (and keep this thing in mind, some supports act as resistances on way up)

4450 - Pivotal point of today - coincidentally, it was yesterday's pivot too... crossing this level will quiten the bears a bit.. otherwise it would be a good entry level for them to go short

4400-4390: yesterday, this had passed the psychology test, but I doubt today's gap down will eat this level in one gulp...

NOW, 5DAY CHARTS INDICATE THAT BELOW 4385 SPOT, THE NEXT BIG SUPPORT COMES AT 4260-4240, THANKS TO THE BIG GAP-UP OF WEDNESDAY...

Here, I'll bring my infamous 4315-4350 (june) gap resistance which was gulped down easily on wednesday's gap up.
So, below 4390, next support comes at 4355-35-15.
4355 is the S1 for today.
And today will be the psychology test of 4315-4300.

I'll look to close my PUT here around 4315-4335, and will go long for intraday (maybe scalping - depends on where we open) at 4315 with SL below 4300.

Just 5 days to expiry - if 4315/00 is held today, then we might just consolidate between 4300-4450 till expiry... (hajmola to digest the big rally)

tsunil4u · #**8994** 25th July 2008, 09:06 AM

(attempting to put forward strategies for FUT):

1. Sell below 4425 for 4400/4380 (this might not happen if big gap down)

2. Sell below 4380 for 4360/4340/4315

3. Buy at 4315 SL below 4300 for scalping some reversal

4. Sell below 4300 for 4275/4250

(PS - I am not that good with FUT levels)

nagendra_gb · #**8995** 25th July 2008, 09:14 AM

Quote:

Originally Posted by tsunil4u

(attempting to put forward strategies for FUT):

1. Sell below 4425 for 4400/4380 (this might not happen if big gap down)

2. Sell below 4380 for 4360/4340/4315

3. Buy at 4315 SL below 4300 for scalping some reversal

4. Sell below 4300 for 4275/4250

(PS - I am not that good with FUT levels)

Sunil,

Thanks a lot dude.. u really explain things in laymen terms.. hats off to you my friend.

uasish · #**8996** 25th July 2008, 09:29 AM

Nifty Fut ;there seem to be good support in the zone 4421 to 4409 & Resistance @ 4468.00 in 30 mins chart.

tsunil4u · #**8997** 25th July 2008, 09:39 AM

Quote:

Originally Posted by uasish

Nifty Fut ;there seem to be good support in the zone 4421 to 4409 & Resistance @ 4468.00 in 30 mins chart.

dada, please let me know this (as i dont have access to any tech software)

in 60min, has the HH, HL support pivot been broken???
if not, then what is that level...???

Czar · #**8998** 25th July 2008, 09:42 AM

sorry dada 4409 wont work, nifty sgx already showing 115 points fall... which is usually accurate...

tsunil4u · #**8999** 25th July 2008, 09:46 AM

SGX Nifty was hovering near S1 level of 4360-55

Now, after 4310, its at 4330...

let's see how our nifty handles S1 at open...

uasish · #**9000** 25th July 2008, 09:51 AM

A Pivot as Saint taught us in Kolkata is like this :=

You must have seen the Congress Parties Symbol the Palm/Hand .
1)The middle finger is Pivotal High becoz of 2 fingers on left the thumb & forefinger & 2 fingers in right the ring finger & little finger.
2) Visible even from a distance.

Now if you reverse the plam/hand you will get the Pivotal Low.

Hope now your confussion is clear,look at charts in IChart / ***** / etc. if you dont have a facility to see chart then how are you trading.