Nifty has taken resistance today at 61.8% retracement level
Going forward important support and resistance level for Nifty
Resistance: 17320 / 17440 / 17620 / 17735
Support: 17051 / 16960 / 16820 / 16705
Suggested trading strategy
Given the set up,
One may consider selling Nifty 31 Mar expiry 17700 Call option and 16700 Put option simultaneously.
This Short Strangle Strategy has 11% yield potential till 31 Mar expiry
Importantly, the strategy has Loss protection for a fall up to 16473 on the downside and on the upside for a rise up to 17927
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