Nifty: Chart set up and trading Strategy

29 mar 2022

Nifty

- Nifty seems to be in Consolidation phase

- Box size is roughly 440 points

- On Breakout Nifty might move towards 17900 odd levels

- if there is a Breakdown, potential downside target 16560
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Important levels and potential different scenarios have been discussed.

For the given set up, my trade strategy for Nifty is a Short Strangle for April series

Sell Nifty 28 April 16300 Put Option (@120)
&
Sell Nifty 28 April 18300 Call Option (80)


The strategy has approximately 11% profit potential on Margin and provides Loss protection for a fall up to 16100 on the lower side and 18500 on the upside.
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The strategy
- provides good return potential
- factors in different situations,
- gives flexibility to be wrong,
- gives time to adjust trade
- and thereby be in a better position to manage trade
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Take care & safe trading...!!!

Disclaimer
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be