iCharts Discussions

[nelson soibam]

sir plz update/thank you

[SwingTrader]

[nelson soibam]

very 2 thank you sir

[SwingTrader]

Sentiment charts (updated on 21.01.2015)

Market Breadth : Long term breadth is declining after a long time but still in very strong territory. Medium term & short term too is quite strong.

Avg Percent Changes of stocks : No sign of weakness at all.

NSE OTM PCR Rank : This one was used by me very differently for position trading. The recent signals are not good at all in this chart. I am not updating this anymore. Price action with technical indicators is working far more efficiently so I don't want to waste my time analyzing this.

[vinay28]

thanks ST. I just feel you may have posted at the nick of time. Or is their already a glint in your eyes?

I could be wrong but to me all three charts suggest a dip in very short term, perhaps next week. Also, long term may have begun its downwards journey. We will only know by March end.

[SwingTrader]

[vinay28]

Srikant, the dip did come within 8 days of my post.

I think it may be a right time for your to post latest charts, if you can find time.

[SwingTrader]

[vinay28]

[navendu78]

I think its time for trading and not for investing. If you have already invested then stick to them and avoid accumulating on dips. Instead buy on dips when CMP goes at least 10-15% below your average buying rate, but don't sell them in fear of market going down. To safe guard your investments it would be better to hold few PUT in Nifty, so that you can make up your losses to some extent. I bought 2 lots of NIFTY-26Mar2015-8750.00-PE for 51/- Rs. on 4th March and am is still holding on to it at 283.90. This helped me to cover 90% of losses i made in my current holdings.

There is a old saying i read some where that buy only "When there is blood on the street" and i guess that situation will come as nifty moves closer to 8400.

That's the time where i think we should pick quality stocks like Axis Bank, ICICI, SBIN, L&T, ACC, Titan, HPCL, BPCL, Cairn etc., Till then keep trading....... Correct me if i'm wrong because this is what i'm following. AM i doing anything wrong?....... Yes, then please let me know. I know there are many friends out here that are million times better then me when it comes to stock market.

[SwingTrader]

navendu78,

If something works for you consistently then what you are doing is right for you. There may be many who might be trading much better than you & I but it doesn't matter. In the end there is only one metric that matters - does what you do work well for you? If what you are doing now is working for you then just keep doing it.

That said, one suggestion I would give is to look at hedging using short futures or short calls if your timing is decent. This is just to make sure that time decay doesn't eat away your hedge (in your case the long PUT). If you want to continue to use long PUTs, make sure your timing is very good to counter the time decay.

Good luck!!!

[navendu78]

Thanks a lot for replying to my post.

Yes, You are absolutely right that time decay eats up profit as it did today when 8850 PE closed at 273. A week before it looked like things are going to change when it came down to 150 from around 200, but the market was appearing to me exhausted at higher level. So i decided to hold on to it.

Basically i don't guess where the market will go rather follow the market and buy both put and call. As in this month i bought both 8850PE and 9100CE for around 47 Rs. each on the same day. Then later on sold 9100CE for 14/- Rs. seeing it is not going to live up.

One thing i still lack is the confident in buying more puts rather then call and whenever nifty starts favoring PUT's i just get stuck to that PUT only instead of buying more PUT at different Strike Prices as i do when nifty starts favoring CALL's.

This is where i'm just failing to improve and this is for the third time that i kept on holding the same PUT and didn't bought any other lot.

For your information i'm very new to this put call trading and am doing it since Dec-14 after practicing it on paper for 2-3 months. Till now things are going right for me but i still think will this buying both PUT & CALL technique will keep on working for me or not.

[amitagg]

At the cost of interjection let me only add that do not buy sell strike where open interest is maximum........also preferably do not let the total option premium exceed xyz......( there is some method..... Experts pls comment)
(Like its good in your case was less that 100 and not 300-350 in beginning of eac month)....... So "week" to buying pair options is important.....

in general ....... It is good to see some OPTION discussion happening which was lacking mostly of late.....can u open your own thread as well and we can take the discussion there for further learning. Being in this thread though had advantages of comments from Icharts itself.......

[navendu78]

Dear Amit,

Sorry to guess your name may be i'm wrong.......Thanks a lot for replying to my post and suggesting a newbie like me to start a thread on option writing. Its like asking a Science graduate to start a thread about using steam cell in fighting diseases............. anyways i'll do that............ but what should be the post title ......... or it would be better to start a new post when i again dive into PUT.....CALL game next month. As tomorrow i'll be closing my 8850PE position by placing stop loss at 250/- Rs. or by selling if it crosses 300/- Rs.

So i'll be buying PUT & CALL in the first week of the month, as i avoid buying at the start of series because of high premiums.

[SwingTrader]

Market Sentiment Charts as of 08.07.2016