≡ Menu

How To Trade Nifty Today RBI Policy

Open a FREE Share Trading Account with ZERO Brokerage on Stock Buying and Automatically Selling

Traditional brokers charge a lot on brokerage, however this broker does not charge anything for stock buying and moniter-less selling. You can also set a Good Till Cancelled order after buying a stock so that the system can sell the stock automatically at your desired price even if you are not monitoring the market. It takes 5 minutes to open an account online. Click here and Open Free Account with them today >>

Note: Extract from my newsletter sent yesterday. Please register your email here if you like to receive such newsletters. You will also receive a free 5 days course on options.

Yesterday (30-Nov-2015) evening I had emailed my subscribers this:

INDIA VIX today closed at 16.43.

It could increase before the announcement of RBI Policy tomorrow at 11 am sharp.

I assume it will drop after that.

What can you trade tomorrow?

If you have taken my course trade Strategy 1 BEFORE the announcement is made at 11 am – NOT after.

If you are already in Strategy 1 – please see if you are getting reasonable profits at around 1 pm. If yes close your positions and book profits. VIX would have dropped and index stable. Great time to take profits out.

Enter again when VIX increases. Looks like 17 is the best to enter. But there is no need to keep waiting. There are no major news at least for the next 15-20 days – so it looks like VIX will be more or less in a range 15-17. So any day you see a spike, enter Strategy 1 again.

If you are an Intraday trader – SELL ATM (at the money) options (both calls and puts at 9.30 am) and book profits end of day or if Nifty moves 1% from the time the options were sold (this is actually stop-loss in profits). Do not sell after 11 am tomorrow.

A 1% move will NOT damage the positions – VIX drop means you will still be in profits.

========== End of Email ==========

Why I asked to sell options before 11 am today?

The reason is this that VIX will be high before the announcement is made and after that it will fall. Sellers can make quick profits trading Intraday.

As you can see VIX today opened at 16.43 – same as yesterdays close – but at the time of writing has dropped significantly.

All Intraday option buyers will lose money today as I do not expect huge movement after this news.

And remember – options buyers, especially the short-term ones or Intraday traders, get very active on these days as they expect huge movements. When nothing happens they close their positions in losses. Sometimes even when the move comes – they still lose money because of the drop in Volatility which leaves them confused as to why they lost money even when Nifty moved in their direction.

Well now you know why. 🙂

Why There Will Not Be Huge Movement?

That is because what happened was expected anyway and now the traders DO NOT know whether to buy or to sell and that could be stocks/options/futures whatever. In situations like these there is going to be a balance and markets will not go anywhere ensuring losses for the buyers.

In today’s case the markets expected no rate cut and exactly that happened. Reserve Bank Governor Raghuram Rajan held repo rate steady at 6.75 per cent in his monetary policy announcement today. When markets expects something, it factors the movement much BEFORE the news is out probably a couple of days before. So markets move huge ONLY if what they expected did NOT happen or something very unexpected happens.

For example if RBI would have decreased rates, then markets would be flying high now. Had it increased rates, markets would have nose-dived. But since the news met expectations nothing major happened – except the drop in volatility.

What is INDIA VIX now?

When I started writing this article at 11 am it was 15.97 (-2.80%) down from yesterday’s close.

Now at 11.45 am it is 15.88 (-3.35%) down from yesterday’s close.

The fall may continue today so the best time to book profits is after 1 pm.

Update at 1.50 pm: Like I said it will keep dropping at 1.50 pm INDIA VIX is at 15.70 (-4.44%) since yesterday’s close. Nifty also did not show much movement for the day – just 10 points is virtually NO movement. Book Profits NOW and close your Intraday positions. If making reasonable profits in strategy 1 close it too. Do not wait more.

We will wait for another opportunity to enter markets. Good traders are NEVER always in the markets. Enter when there is an opportunity and exit with profits as soon as you can.

Update at 3.30 pm: INDIA VIX closed today at 15.63 which is -0.80 from previous day’s close or -4.87% down from yesterday. Nifty also did not move much – closed at 7954.90 or 19.65 (+0.25%) points up from yesterday close.

I think a lot of you would have booked good profits.

Build Wealth Slowly Should be Your Mantra.

Enjoy the profits.

I hope you are enjoying my newsletters and profits too. 🙂

All The Best.

TheOptionCourse.com © Copyright Since 2013 ® All Rights Reserved

Click to Share this website with your friends on WhatsApp
Intelligent Investor - A MUST Read Book for all Investors

COPYRIGHT INFRINGEMENT: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

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.

DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. I do not give tips or advisory services by SMS, Email, WhatsApp or any other forms of social media. I strictly adhere to the laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles on this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given on this website. I am not responsible for any investment decision you take after reading an article on this website. Click here to read the disclaimer in full.

Disclaimer | Privacy Policy
I Need Stock Market Advice For Free
Will Nifty Break 7700 Highest Open Interest

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 2 comments… add one }
  • marina s rao April 4, 2016, 1:50 pm

    Dilip ji,


    Very timely advises on the eve of RBI policy announcement.

    Learning points from this post :

    When markets expects something, it factors the movement much BEFORE the news is out.

    Good traders are NEVER always in the markets.

    Plz correct the following line :

    In the paras with sub-heading ‘ Update at 1.50 PM : ‘ :

    If making reasonable profits in strategy 1 close it to.


    If making reasonable profits in strategy 1 close it too.

    Enter when there is an opportunity and exit with profits as soon so you can.


    Enter when there is an opportunity and exit with profits as soon as you can.


    M S Rao

Leave a Comment