Nifty Options Trade & Some Learning Ideas.

Here is an excellent lesson on Creeper Intraday moves by Corey Rosenbloom. I urge you to read the full lesson. The summary is:
A Creeper intraday move is a one sided move in a security. The trend is completely in one side, without pullbacks.Prices creep in the trend direction. Since there is no pullback, there is no opportunity to enter the trend. There are no reversal signs so there is no question of fading the trend. When traders encounter a Creeper: how should they trade. The best way Corey says is to use a simple moving average as a stop. Enter the trade with a stop around a 20(for example) period MA. A similar stop can be obtained by drawing a trend line. Stay in the trade while the MA or the trendline is not broken.
You do not see me on TV since I am on a holiday.
Gold Bees: Building a position in Gold through the Gold Bees is an excellent idea. The SIP route is the best way. Invest a fixed amount every month, on a fixed date.
Rocky has a number of queries which require a fair amount of time to respond.

Sasi has a question on ORB: For ex: “If ATR of Nifty is 100 and Nifty opens with a gap of 80 points and further moves 20points in 1st 15 mins(total of 100 pts up)and breaks above the high of 15 mins. Psychologically it difficult to go long at this point for Intraday trader. ”

My Notes: First, the ATR is an average of the range. Some days will have low range and some will have more. If the ATR is 100, surely some days may have a range of even 150 or higher. If the gap is substantial, then (a) wait for a pullback / consolidation, (b) take the initial trade only if the stop-loss is within your limits.

Nifty on way to close higher for this F&O settlement

The September F&O expiry takes place tomorrow. The settlement started on August 26, Friday, opening at 4844. We closed today at 4948. Barring unforseen events, it seems reasonable to assume that tomorrow’s close should be above 4844. To this extent, the September month was a period of consolidation.

The month of September has seen a narrow range movement in the Nifty. Remember, after contraction comes expansion. This tells us to expect large moves in October.

The Nity itself remains in a bear market. The sign of an intermediate up move will be the cross above the 50 day moving average. For the Nifty, this may take some time since the average currently stands at 5166. This is also the zone of resistance for the Nifty. We can safely assume that a rally above 5165 will be the signal of a change in the trend to up.

Much more interesting is the trading range in the Nifty with support at 4750 and resistance at 5165. If and when this zone breaks, we can expect a significant trade from the breakout / breakdown.

Nifty Options Trade

My suggestion is to trade a move out of the 4750 – 5165 trading range. Rohit asks “Then is it a good idea to buy a 4700 put and a 5200 call, because either we go up a lot or we fall, a lot”

My Notes: Yes, it is. Since we have almost a month for October expiry, buy October 4800 put and 5200 call. This is slightly bearish because current prices are closer to 4800 than to 5200, but that seems fair given the bear market.