NIFTY in equilibrium. Fresh signal awaited.
- Arup Nag
- Dec 15, 2016
- 1 min read
Yesterday 15th Dec the news of US FED rate hike created uncertainty in the market which resulted in volatile price movements throughout the day. NIFTY opened down heavily at around 8128 but recovered within 30 min towards 8230 but failed to sustain at higher level. Late hour selling brought NIFTY back again the it closed 30 points down.
We do not have any fresh signal since 13th Dec, before that we had a bullish hedge in place which was created by buying NIFTY at 8170 (spot) and selling 8250 calls. The futures are losing at this moment by 20 points but the overall position is in profit because of the 8250 calls losing value rapidly (VIX coming down everyday). Our exit on the downside will be when the calls reach a delta of around 0.20 (currently at 0.36), unless a fresh bearish divergence or anomaly appear on out SMT chart.
Tags: hidden divergence, custom indicator, divergence, proprietary trading, futures, trading, smart money tracker, smart money, nifty, indian stock market, forecasting, regular divergence, derivatives, finance, prediction, options, market analysis