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Since a lot of time Nifty is doing nothing. All my customers of the conservative option course trading the strategy 1 – the non directional trade would have made good profits.
But there are indicators that now any day Nifty may move. Which direction we do not know – but there can be a move. I know there are lot of you who DO NOT trade with the hedge – I recommend for next 30 days be 100% hedged. Those who hedge always need not worry.
If GST bill is passed – Nifty is headed up.
But I think 7600-7700 is a good support for Nifty. (That does not mean you buy a Future – I do not give suggestions so that you trade without research based on what I say in this blog. Please do your own research before taking an investing decision.) You can buyÂ Nifty BeESÂ though, hold them till you make 5-6% profits. Well you can also switch some of your debt mutual funds holdings into equity. But only some of it. Read this article for more information.
Which Stock To Trade?
ITC Ltd. is looking very attractive at 313. Start accumulating the stock. Some now at around 300, then at 270, then at 243 (probably it will not go there). It is going down because GST will severely effect taxes paid by ITC. But we all know if that takes place, ITC will increase the price of their products especially cigarettes. And humans will keep inhaling cigarettes – it does not matter what the price is – habits don’t die easy. 🙂 And ITC will once again bounce back.
If you have cash trade the conservative stock strategy on ITC.
What Will Happen to India VIX:
It closed today at 15.87. Still good for strategy 1. But if you have cash read below:
If FED does a rate hike we may see some correction on worries over FIIs taking their money out from the stock markets. But if you know strategy 1 who cares? The Fed, holds its next policy meeting onÂ Dec 15-16. So I assume VIX will again increase and will be at a good high onÂ Dec 14thÂ (Next Monday). If you have free cash trade strategy 1Â on MondayÂ orÂ Tuesday.
You can even trade this Friday, 11th December, 2015. Since we have 2 days off weekend if there is not much increase in VIX then you can get the benefit Theta depreciation during holidays. Remember that Theta also depreciates during days stock markets are closed. 2 days benefit is good if VIX does not swell. If nothing it pays off your brokerages.
What may happen short term to Nifty?
There is a strong signal that FED will hike rate by 0.25%. But if nothing major happens to Nifty and GST bill is passed, Nifty is then headed for 8300-8500. The only issue is the FED reaction – but there are a lot of signs that markets will not panic like they did a couple of years back.
Since the signals of rate hike is very strong I think Nifty will factor it end this week itself.
Remember VIX cannot factor anything before the news except going up, so it will only increase. And even if it does not – it will fall after the news.
Good opportunity – make money. 🙂
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Disclaimer: This post is for educational purpose only. If following any advice written above please first do your own research. Stock market investment are subject to market risk so please have a proper money risk management plan.
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2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.
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Here is complete process of my course1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.
Within one month you can start trading on your own. No need to depend on anyone once you are on your own.
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Dilip Shaw, Founder
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.