Nifty opened negative in the morning and continued to play in the range of 4750 to 4850 since 3 sessions. Good for option-writers who started to eat premium as they are high in the beginning of the series. FNO turnover also quite less in the last 2 sessions. Now the key support on the downside is 4740 and close above 4860 only can unfold further move upside.
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The daily Nifty chart trending in upward channel with 4740 key support level on the downside.
This kind of market is highly suitable for option-writers. Infact, sell strangle option strategy is highly suggestible. I preferred shorting 5000ce at 75 and 4600pe at 59 ..both total 134 in the last before session on 28th and now the total is around 115. I suggest to short options both sides but not naked shorting. Always keep Strict stoploss in the trading terminal while shorting options. With good insight into the option-writing, it is easy to earn through shorting of options either by strangle or straddle, in this kind of market where in it creates dilemma for traders whether to take long of short position. As you can observe, when we are not sure about the direction of the market, I preferred shorting the above strangle and in 20 points profit on one lot without creating a mess out of trading.
Nifty Daily Chart
Nifty Hourly Chart
About the Author : Priya is the Technical Analyst and author of Analystcalls and often writes guest posts for Marketcalls.
