HDFC Bank Q4 Results Strategy.

HDFC Bank is set to announce its quarterly results on 21st april. So some action and volatility can be seen in the coming week in this stock.

By seeing the chart we can take the trade at the start of the week as below.

The strategy whether to BUY / Sell will be based on the price open and close of the first hour on 10th April or any hourly close later in the day if it is within the current range in the opening hour so stay tuned.

The strategy would be BUY if it closes above 1445 with a SL at 1418 Target 1472/1499
The strategy would be SELL if it closes below 1418 with a SL at 1445 Target 1393/1366

If you want to play both sides then you can initiate an Long vega option strategy on Monday as follows

BUY HDFC BANK APRIL 1460 CE at 9-11
BUY HDFC BANK APRIL 1400 PE at 5-7

Put a Stop loss at combined premium eroding 30% i.e combined premium falling below 12 which is currently at 11+7 =18

Target for booking profit can be 30-40% profit from current levels of 18 which is around 24-25 levels as Initial Profit booking levels

This option Strategy is 1:1 Risk Reward Tradeoff!

Nifty made a Turnaround to Start a Fresh Rally!

We have seen cautious approach by the foreign institutional investors just before the State election results which we have noted in our earlier post.But on Stable Win by the Ruling Party BJP in 4 out of 5 States that went for election the results have been a clear mandate which welcomed the FIIs to become more confident of much wanted reforms and belief in growth story and they are now loading up their kittys with stocks to fuel a fresh rally at this juncture when the indexes are hitting All time highs.

This is evident from the Fund flows in the Derivatives and Cash Segment just after the election where they have booked out the loss in bearish positions and Loaded the Bullish positions of a significant portion in Index Futures and Cash segment which gave rise to a bullish Breakout in the Index and stocks.

So It is clear from these actions that they believe in a further Rally in the Indian Markets , So it is clear time to add some stocks to your portfolios to get advantage of the rally that is to come.

The sectors which are to look out for are Pharma in the first place followed by the Energy to make some meaningful gains as the rate sensitives have already been rallying for a long time since Feb 2016.

In the Banking space there are certain opportunities to look for in Beaten down PSU stocks which haven't participated much in the rally that we have seen and in the Private Banking space Axis Bank is a good opportunity at current valuations.

The IT Space is witnessing a weakness even in the wake of the strength in the markets which suggests to put a limited exposure in this space where concerns exist on Trump becoming the President.

Disclaimer: The views shared here are purely for educational Purpose and are not in any manner an advice to BUY or SELL any specific stock or Index Accordingly you are requested to consult an SEBI Registered Financial Advisor before taking any Investment Decisions

Nifty Volume Trick to Identify Trending moves!

Today We are going to reveal one of the trading clue about Nifty which is very useful for Short term trading in nifty.

This clue can be found in NIFTY INTRADAY 5MIN CHART

Click here to see the CHART LIVE

As you can see in the chart above , Observe that on 21-02-2017 12.00PM NIFTY formed a 5min candle with a volume of 688.5k Quantity which is the BUY trigger for us.similarly if it is a red candle it is a sell trigger for us.

Trigger Our trigger is any candle on 5 Min chart with a volume > 600000

If the candle is green it is BUY Trigger for us
If the candle is red it is SELL Trigger for us

The Entry here would be (High+low)/2 of that candle which here is 8877.1+8872.9/2 = 8875 and Stoploss would be the low of the previous day's low price for BUY and previous day high price for SELL

Target The  target for the trade is

For Buy Triggers Entry Price + 10 Points for every 100k volume for example in this case it is 8875+68.85=8943.85

For Sell Triggers Entry Price - 10 Points for every 100k volume

EXIT Trigger Apart from exit by way Stop loss or target there might be situations where you need to exit from the opposite trigger i.e SELL for BUY and BUY for SELL

For Example in this case if NIFTY before reaching the target of 8943.85 forms a red candle with the trigger volume then you should exit your trade.