we'll switch to trying to play out some trades ...as always crowd sourcing is always solicited to make this a success.. just picking up from what i said in diff thread
Positives
1) Commodity cycle seems to have played out with Gold recovering 4%
2) Rate cut seems to be factored in
Negatives
1) Corruption scandals refuses to die down
2) Earnings from companies look to be lacklustre
3) India story looks to be played out till elections are over
So the probability of Nifty hitting the top of 5970 seems to be more likely and hence the trade on downside going forward looks more rewarding
As day traders we could look at buying on dips till May 3rd and switch to short positions a day before or on the rate cut day
So for coming week... buy on dips 5900 CE and sell 6000CE when nifty approaches 5970 with a Sl of 20 points for both the trades
On May 3rd start accumulating either Puts or sell 6000CE whichever you are comfortable doing.. lets track it day by day
Positives
1) Commodity cycle seems to have played out with Gold recovering 4%
2) Rate cut seems to be factored in
Negatives
1) Corruption scandals refuses to die down
2) Earnings from companies look to be lacklustre
3) India story looks to be played out till elections are over
So the probability of Nifty hitting the top of 5970 seems to be more likely and hence the trade on downside going forward looks more rewarding
As day traders we could look at buying on dips till May 3rd and switch to short positions a day before or on the rate cut day
So for coming week... buy on dips 5900 CE and sell 6000CE when nifty approaches 5970 with a Sl of 20 points for both the trades
On May 3rd start accumulating either Puts or sell 6000CE whichever you are comfortable doing.. lets track it day by day