August Nifty

Hi, I am new to nifty trading. I have shorted Nifty at 5408 for the first time, so I would appreciate if anyone could give me guidance on how to go about it. Shall I book the loss and make a fresh long position for 5500+ or should I wait for Nifty to go back towards 5350?

Thanks in Advance.

Watch the markets for the next 2/3 days and try to exit around your purchase price. It depends on how the US markets close. As and when they close in the negative the Indian markets will open gap down in the morning. Else watch the European markets around 1230,if they close in the negative then the markets start falling at 1pm or so.
You should not have left the position open or else u could have bought a 5300 call to hedge and limit losses overnight.

Looks you forgot to put a stop loss. No one know how market will do in future . Every one tries to follow the market using various technique .
Coming to you point , never wait beyond a limit of what you can bear. you will get chance to play again but if your loss is beyond your limit then you might not dare to trade again.
At this moment I see nifty reaching 5500 + very soon. So just watch tomorrow (you can't do any thing now anyway ) how market open and wait for Europe market to open. If Asia is trading strong and Europe open in green then close your short .Please don't take you long position based on my call

Do not do long. Exit from short if you get your level tomorrow. I do not think it will go to 5350 before 5500. But market can show your shorting level before showing 5500.

My gut feel NF will test 5400 tomorrow once again. Probably people are happy to see Dow up today. But we may not follow the same tomorrow.

Global market relations are complex I think. It would not be so straight forward at this point.

Happy Trading!

Hi

Thanks everyone!. I really appreciate your inputs.

For Nifty, I have been using Camarilla method lately, which I learnt from the Traderji.com (a great site for newbies like me I must admit). I downloaded an excel sheet uploaded by some senior member (sorry forgot the name) and using the same excel sheet by calculating previous day's highs, lows, and close values, but many a times I am lost when the values are outside the range of H4 to L4 (as they were today).

What do you guys do in such a case and how do you calculate stop losses, targets, etc.

Finally, also when it comes to calls and puts, even though my agent has tried to teach me many times I am confused every time on how do they work and how do I correlate them with short or long positions of a stock or Nifty to cover up the losses or maximize profits.

I know I am asking too much but I know there are members who are there to help and guide me.

Thanks a ton again.


:thumb:

Would anyone care to help me with the above queries?

The disadvantage of using camarilla pivots is that you miss out of major moves because of gap-ups or gap-downs.

The simplest way to keep a stop loss is setting a percentage of the trade with goes against the direction you entered like say 0.2 or % or less depending on the risk you are willing to bear.

The most basic ability is to read the trend direction and strength and if you entered wrongly you can exit asap.

Due to gap ups or gap downs the market could open with a huge difference compounding your gains or losses.
So if you are short on the nifty at a value ,buy an call option some 100 points lower than your position. So at a gap up,the call options gains reducing the losses from the futures.

So if you are long on the nifty at a value ,buy an put option some 100 points higher than your position.
In a gap down the put options gains reducing losses from the futures.

But both trades are entered only in futures only when you are confident based on your trading system and methodology, the options cover the worst case scenario.

First signs of reversal in NIFTY IS ON cards now. As you are already in short position, you can hold your shorts with a stop loss of 5480.

As of now the market has a slight bullish bias, which is not worth trading.
Get out of your position and wait for a better opportunity.

Bulls taking breath do not become bears.