Option Trading Strategy for the week by Ashish Kyal, Author, CMT

VolumeProfile clearly helps in deciding to trade Options. Here in this video get a clear strategy on Nifty and BankNifty. 

There are various methods that are available to read the market but a mentor who has decades of experience act as a guide for application of these methods in a disciplined way. Know more about our 3 months of mentorship starting from July 2021- https://www.wavesstrategy.com/mentorship-form/ -------------------------------------------------------------------------------------------------------------- Testimonial from Client – “Ashish is an extremely well read and informed teacher, and it was a pleasure to learn practical trading from him. I will recommend his courses to anyone who is a beginner or expert in trading. For the beginner it will be eye opening!.”– By Aditya Shroff -------------------------------------------------------------------------------------------------------------- We would love to connect with you on Social Media: Twitter - https://twitter.com/kyalashish/ Instagram - https://www.instagram.com/kyalashish/ Facebook - https://www.facebook.com/AKTradingGurukul Telegram - https://t.me/AKTradingGurukul LinkedIn - https://www.linkedin.com/in/ashishkyal/ -------------------------------------------------------------------------------------------------------------- "SEBI “Research Analyst” No: INH000001097 Visit us : https://www.wavesstrategy.com/ Write to us on : helpdesk@wavesstrategy.com Contact us: +91 9920422202 --------------------------------------------------------------------------------------------------------------

Nifty Elliott Wave with PCR Ratio

 Nifty had been stuck in a range over past many days and Option buyers have been losing on either side. We have been maintaining our stand that it is an Option sellers’ market and the below research further highlights key levels on basis of Elliott Wave pattern and PCR ratio published to clients.

Following chart was published in morning on 24th June 2021 in “The Financial Waves Short Term Update”

Nifty 60 mins chart:

Elliott Wave analysis: Following was mentioned in the morning research report before markets opened:

In last few updates we mentioned about where writers are active in the current expiry which is due today. During the recent rise near 15895 level, we clearly mentioned that 15900 and 16000 can act as an immediate resistance where Call writers were active.

Let us try to understand where the maximum OI stands along with PCR ratio. Last sessions data indicates that Call writers became further active at 15800 level where PCR slid from 0.56 to 0.26 levels. At 15700 strike PCR slid from 1.26 to 0.76 levels. At 15600 strike PCR increased from 2.75 to 3.39 levels. This data overall indicates that prices can find immediate resistance at 15800 and support is placed at 15600 levels.

The 60 mins chart shows that from last 2 sessions prices are moving lower in corrective manner. There was sharp fall followed by sharp rise towards 15895 level and now again it is moving lower. Such movement often indicates formation of Triangle pattern is possible and hence positional traders should wait for breakout now. As per wave perspective, this can be wave x after double correction pattern however we need to see further price action to confirm the same. Any move below …… will suggest that retracement of the prior rise from 14270 to 15900 level has started.

In short, Nifty is intact in big consolidation range of 15900-15450 levels. Today being the expiry volatility can increase by 3 pm and hence one should trade accordingly. To take directional call, break above …… or break below …….. is required now!

Happened: Nifty continued to move in a range and 15800 indeed looked to have acted as a resistance level and the expiry happened at 15790 levels. This clearly shows that by combining simple OI data along with Wave pattern can help Option Buyers or Sellers to accordingly take the positions.

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Nifty, Reliance, SBI, BankNifty Trade Strategy For Week Ahead 18-06-2021

There are various methods that are available to read the market but a mentor who has decades of experience act as a guide for application of these methods in a disciplined way. Know more about our 3 months of mentorship starting from July 2021- https://www.wavesstrategy.com/mentorship-form/ -------------------------------------------------------------------------------------------------------------- Testimonial from Client – “Ashish is an extremely well read and informed teacher, and it was a pleasure to learn practical trading from him. I will recommend his courses to anyone who is a beginner or expert in trading. For the beginner it will be eye opening!.”– By Aditya Shroff -------------------------------------------------------------------------------------------------------------- We would love to connect with you on Social Media: Twitter - https://twitter.com/kyalashish/ Instagram - https://www.instagram.com/kyalashish/ Facebook - https://www.facebook.com/AKTradingGurukul Telegram - https://t.me/AKTradingGurukul LinkedIn - https://www.linkedin.com/in/ashishkyal/ -------------------------------------------------------------------------------------------------------------- "If one knows to apply cycles trust me it is possible to time the market to the very hour and at times to the very minute. learn how to Trade Nifty and trading strategies for coming week using cycles analysis" -------------------------------------------------------------------------------------------------------------- "SEBI “Research Analyst” No: INH000001097 Visit us : https://www.wavesstrategy.com/ Write to us on : helpdesk@wavesstrategy.com Contact us: +91 9920422202 --------------------------------------------------------------------------------------------------------------

Adani Stocks Crashed - Is It Time To Buy or Big Down Move Starting?

 Adani Stocks crashed but is it just a temporary fall or bigger degree correction is underway! Following is the news –

“National Securities Depository Ltd (NSDL) has frozen the accounts of three foreign funds — Albula Investment Fund, Cresta Fund and APMS Investment Fund — which together own over ₹43,500 crore worth of shares in four Adani Group companies. These accounts were frozen on or before May 31, as per the depository’s website. The freeze on the three accounts could be because of insufficient disclosure of information regarding beneficial ownership as per the Prevention of Money Laundering Act…”

Now that there was trigger and big correction across Adani Enterprise, Adani Ports, Adani Power, Adani Total Gas and many more let us pick up one stock – Adani Power and see if we see from the lens of Elliott Wave it can provide us better opportunity from trading perspective.

Adani Power Daily chart: Elliott wave

We can see on the daily chart of Adani power that that the rise is a clear 5 wave impulse structure which seems to have completed. This indicates that a bigger degree correction can start as the stock reversed on downside possibly on back of news but the pattern looks complete. After a 5 waves up we see retracement of the rise as per simple Elliott Wave technique.
Now a bigger degree correction can follow. Wave theory suggests that often the downside correction in an uptrend can end near the area of the prior degree fourth wave. Also, if we take the 61.8% retracement of the entire rise also lies near the low of wave (4).

A confluence of these two factors suggest that we could see a large correction towards 85-84 levels in Adani Power eventually.

We might be early to pre-empt this move but it is better to be out early than late when you are trading markets. Also if the stock breaks the high again we might see extension of the ongoing leg but unless that happens it seems there can be a bigger degree correction underway for Adani group stocks.

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Timing the Turns on Crude Oil to very Day, Hour & Minute!

 Crude is exhibiting amazing Time Cycles and turning areas right from Daily to Hourly time frame.

In this research we will focus on analyzing the Cycle period and understanding their forecasting ability.

MCX Crude (INR) Futures Chart – 115 Days Time Cycle

Crude Oil 73 Hours Time Cycle

We used the concepts of Hurst’s Time Cycles and found actual cycles working on Crude Oil.

Crude Oil 115 Days Cycle: We can see that all the major lows formed on Crude Oil is near 115 days Time Cycle. This includes the low formed during the crash seen in April 2020 when Crude in USD turned negative cited to the Oil glut created as a result of ongoing Pandemic. But if one were to follow this cycle period it very clearly suggested that the upturn was imminent when majority were focusing on news and it worked out extremely well. The recent low was also near to this cycle.

Crude Oil 73 Hours Time Cycle: After analyzing the bigger cycle the short term cycles can be identified. The above chart clearly shows important turn areas can be identified on Crude Oil every 73 hours. It is working so extremely well that traders can use this simple cycle analysis and time their trades accordingly.

References for above research: Book – Effective Trading in Financial Markets Using Technical Analysis by Smita Roy Trivedi, Ashish H. Kyal. Get your copy Here

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