Today, Nifty had completed AB (10490 to 10094) =CD (10409 to 10033) Pattern.
This post is all about Index Trading (Nifty December Futures 10150 & BankNIFTY 25220, likewise) buy Position which is currently Open, with 10000 Spot Index Closing basis Stop-Loss, however SL Exit is subject to confirmation.
Reminder: For us BankNifty does not have individual standing rather follower of Nifty.
Secondly, the main objective of this post is to highlight / explain that,
- ROCKET believes in advance alert covering trading levels and strategy thereof.
- Over Trading in FnO does not pay. Only limited, disciplined Trading is way forward.
- Focus on Price, Volume, Market Internals and Ignore Announcements, Event, News.
- Why to trade in Futures only. Why not in Options, Intraday and / or Penny Stocks ?
- Prime Objective of Market is to keep Traders in Confusion. Because then only enough Liquidity and volatility would be maintained, all day and at all the time.
- Everyone has their own version to justify particular price movements.
HOW WE MISSED BOOKING PROFIT IN PREVIOUS CALL:
Prior to Current buy position, Rocket Paid Clients & Trial Groups had buy position in November Futures for Nifty (10240) & BankNifty (25500) for target of New high. Follow-on message was sent to them on 22 November.
And, we don’t believe in bombarding of Messages. Only quality is practised.
Screen Shot Attached. Please do read Red Box highlighted content for much clarity.
Surprisingly, after our buy advise, MOODY’s had upgraded India’s Sovereign Rating after 14 long years. Even then, Nifty had failed swing and we missed to book out Nifty 200pts running Profit & BankNIFTY 500pts+, per lot basis.
Final Result was Negative therefore very bad:
Because, time & resources blocked for 15 days and got negative result.
Entry was on 16 November and Exit was on Expiry Day (30 November)
We were in Profit of 200pts and 500pts in NIfty & BankNIFTY November Futures after our Buy in Indices respectively but finally had to closed-out with 15pts & 150pts loss.
Above Example highlights that without any news, announcement, events; Market had seen failed swing movement from 15 to 28 November 2017 (Price wise 10094 to 10409).
Secondly, Imagine, if ROCKET had advised in Call Options then Losses would be even bigger. Because Options Trading is HERO or ZERO Trade Set-up and since, we exited on Expiry Day at closing time therefore November Options would definitely be Zero, only.
Current Open December Futures Positions:
Yesterday, Nifty & BankNIFTY was advised buy at 10150 & 25220 respectively.
NOTE: Current buy is re-entry for previous buy given on 16th Nov.
Today, Open Positions are giving MTM Losses of 72pts & 283pts per lot basis.
Agreed, this does not look (and feel) good at this point in time but at this moment, No one can say with 100% surety whether ROCKET Target of 10700 & 10900 will come or SL 10000 would Trigger, SL Exit is subject to confirmation and for whatever reason. Namely
~ Favourable, Gujarat Election Outcome,
~ Favourable, GST Rules & regulations Tweaking,
~ Favourable, Economy related Announcement by Govt., and
~ Favourable, Global Market Movements, even based on their respective local issues,
Favourable provided NIFTY achieves given Target that is All time high closing basis.
Read, Unfavourable if Stop-Loss get hits. Hope this does not happen on future date.
But, we do not give any importance to either favourable or unfavourable reasons to justify Target or Stop-Loss because ROCKET trading strategy is dependent on market levels, Secondly, we are strong believer in following concept, namely,
- Price Precede News, or Bhav Bhagwan Che… (Price is GOD)
However, In case of Unfavourable Outcome:
Due to any reason, If Nifty Spot Index Closes below 10000 and with Confirmation, Clients had to book out losses (hope, this does not happen but still better to be prepared with back-up plan) then following will be our next course of action,
- Considered this market outcome (exiting from long positions) as Overall Trend would turn bearish until fresh buying happens.
- Then, our view will be Short Selling on Rise, subject to Fresh entry Formation
Now, will Bearish Head & Shoulders Pattern would worked out ? who knows!
Thanks for Reading.
Get in touch with us at,
~ WhatsApp Number: 09900330558
~ E-Mail ID: Rocket@RocketTrades.com
For any more details, doubt, feedback please Speak with Nilesh Jain on 09900330558