Union Budget 2016

29th Feb gonna be a volatile day in terms of the index movement. It's likely. gonna be a day when you can make it big or loose it big. So few pointers to keep in mind . please feel free to add your points also:

My take:
1. Historically volatility drops significantly (15-20%) post budget announcement .last yr it saw a fall of 18% . so short strangle can be a good trade
2. Last budget.. Index intraday changed over 160 points but eventually closed almost flat . so avoid panic buy/sale intraday. Have support resistance levels for SL
3. with alot of stakes n expectations on budget, likely markets are likely to disappoint...so stag slightly short as a trend . short calls are the best bet.

4. Avoid Bracket orders , as the limits are likely to be executed very soon due to volatility.

Best of luck for the big day trade.
SM

Thanks SM

I would like to add that one should check the latest email from their broker regarding any special changes that they have made regarding the margin amounts and non availability of certain order types etc. "just as zerodha has sent emails to their clients", so that there are no surprises for the traders, from the broker side, during the live trading.

Thanks and regards

I am going to do naked trading with some money from profit....
Hedging with big stop loss in both direction.....

full margin apply on budget day .
due to high volatility MIS, CO, BO not allowed by brokers.

last few budgets session nifty future movement.

5 min chart..

2012 budget 16 mar



2013 budget feb 28



2014 budget july 10



2015 budget feb 28

oh wow !! great stuff. Can you post the similar charts for Banknifty ??

I am likely to trade equities on the budget day, if trading at all.

sorry i dont have banknifty fut past data. i am afraid of budget days but this time i am going with my trend following system with stoploss no target. i dont want to change rules and want to trade my system as per rules. lets see.

Thank you so much for posting the charts - The Disciplined Trader