Trading NR7 setup

[rohangawale]

Nr7 triggered on 25th aug are:

[B]STOCK		HIGH		LOW
NIFTY		4,673.00	4,582.00[/B]
ACC		794.7		771.25
GAIL		340.2		333.1
HERO HONDA	1528.8		1500
HINDUSTAN UNILEVER272.7		266.5
ICICI BANK	767		750.35
MARUTI		1448		1411
NATIONAL ALUMINUM339		332.95
ONGC		1192		1170.5
TATA COMM	516.85		504.1

Close of NR7 stocks triggered on 25th aug:

[B]STOCK		CLOSE[/B]
ACC		799.85
GAIL		330.6
HERO HONDA	1498.95
HIND UNILEVER     263.1
ICICI BANK	761.9
MARUTI		1405.25
NAT ALU              338.7
ONGC		1174.1
TATA COMM	519.7

 

[lazytrader]

I know these big guys have something to do with todays range. Everyone runs to buy straddle and tomorrow nifty will expire at the same price and everyone will lose money on expiry

 

[rohangawale]

NR7 stocks triggered on 26 Aug:

[B]STOCK		HIGH		LOW
NIFTY		4,698.00	4,659.00[/B]
ABB		740.75		727.3
AXIS BANK	936		917.5
BPCL		509.45		497.3
CIPLA		264		259
HDFC LTD	2539		2490.1
ICICI BANK	768.4		752.5
IDEA		81.4		79.8
LT		1584.3		1564.7
NATIONAL ALUM	340		335
ONGC		1187		1169
REL CAP		839.8		823.65
REL COMM	268.9		263.75
SIEMENS		492		483.05
UNITECH		92.7		90.75

 

[WOD]

I know these big guys have something to do with todays range. Everyone runs to buy straddle and tomorrow nifty will expire at the same price and everyone will lose money on expiry

+1.....Much probabililty of nifty expiring between 4600-4700.....but anything could happen....in markets we trade, even 4800+ expiry is not ruled out...

 

[WOD]

on both previous days with range of 33 i.e on 19th feb and 14th jan we saw next day as as black candle with nearly 3 times of range i.e next day was downtrend with nearly 90 pts range.

on both occasions we saw downtrend in nifty of nearly 200 pts. price took nearly 7 days to break the high of NR days of 14th jan high and nearly 15 days to break the high of NRday of 19 feb.

if history is repeating then we may see 200 pts downfall from here and we may test somewhere near 4500.

anyways market is the best story teller and we will wait for what it shows us.

Great findings Rohan.....Really appreciate your commitments towards learning NR7 pattern (you made my job easy )......

Downfall??? I am skeptical......will be interesting to watch markets tomoro....

 

[WOD]

Welcome back WOD.
In your absence, SM and we had discussion on this point when nifty gave 60 point range on 14/Aug.
Last time we had 33 point range was on 19/Feb and 14/Jan of 2009 but NIFTY was 2700 value.

We had NR 7 day, yesterday and another narrowest range today. These extended consolidation just indicates that biggies are out of the market. And market is at the mercy of
daytrader, or swing trader. We might see same 4600/4700 range unless biggies see this as opportunity to jump in call it enough is enough.

You are right, spring is compressed like never before. So lets wait for market show its colour.
If you want to be ahead of the others, then u can use options trade and create market netural LONG strangle / straddle position. (In I have opened long 4600 P /4700 C Sept strangle today and will
wait for market to tell me direction of breakout).

Happy Trading.

Straddle & Strangle......I have quite different view on both of them.....both of them are useful only if we get good gap up opening on the next of buying.....Most of the times I have observed that after NR7 day, we dont get good gapups but in the middle of the trading session nifty breakout and give us a trend......and then in this case I suppose unidirectional strategy suits best to me (according to direction of the breakout take the call or put)....

Thanks...

 

[rohangawale]

Great findings Rohan.....Really appreciate your commitments towards learning NR7 pattern (you made my job easy )......

Downfall??? I am skeptical......will be interesting to watch markets tomoro....

WOD,
i was bearish from past couple of days and as mkt was making new highs my gut feeling of getting bearish was increasing.
after seeing todays trend and seeing past 2 NR7 Results i think that may be its the day i wanted to see.

major difference on prev situ and this situ is that , tomo is an F&O expiry and prev it was not. and on expiry what happens we all know(actually no body knows).
so will have to wait for breakout. as said earlier that if breakout is on upperside still there is no point in going long as its major resistance level, but if breakout is in downside then we have much more to earn.

lets see what our professor nifty has to teach us in tomo morning session.

 

[rohangawale]

till now mkt it trade in range of yesterday i.e 39 points.
no breakout yet on any direction.

mkt is trading inbetween pivot level and prev day low (4679-4659)

lets c how much time mkt stays likethis

 

[rohangawale]

Finally touched 4700 after 15 trading session.:clap::thumb::clapping:

 

[AW10]

I know these big guys have something to do with todays range. Everyone runs to buy straddle and tomorrow nifty will expire at the same price and everyone will lose money on expiry

LT, if option BUYER does not look at remaining life of option and his expectations about the timeframe for the move then it is problem.

I am not anticipating big move to happen on expiry day..but after that.
Yesterday VIX was 36, ie. options were cheap.. So that was perfect time to be buying options - low VIX, low interest in mkt, narrow range ready for expansion.

That's the reason I pickedup of Sept contract so that it has enough time to bloom and volatility to expand..

Happy Trading