As expected, the break out bull run continuing in Nifty. Our position is in green

On Thursday, 2nd July, Nifty opened with a significant gap up of 57 points at 24062 and remained above that level throughout the day. It steadily moved upwards and closed 170 points higher, confirming the bullish trend we anticipated in our previous post. On Friday, before the weekly close, Nifty demonstrated additional strength by opening 200 points higher at 24375 but could not maintain that level. Shortly after opening, it began to decline and ended the session at 24270, still 95 points above the previous day's close. Today, on 6th July, it has once again moved higher with strong confidence, up by 150 points at the time of this writing.

Over the past three days, the MHAF chart has developed three robust bullish candles. According to our spreadsheet, which pre-calculates the triggers, the buying trigger was surpassed on July 2nd at 24095. On that day, Nifty closed at 24175, prompting us to establish our initial bullish position by going long on Nifty futures and simultaneously selling the 24300 CE.

We purchased 260 July futures near the end of the day at 24260 and sold an equal quantity of 24300 CE at Rs 277. Due to a significant drop in India Vix in recent days, we received a relatively small premium, reducing the maximum profit potential from this combination to just Rs. 82,420. Although this is not ideal, we decided to proceed and observe how the trades develop over the next couple of weeks. Consequently, our downside reversal point is now at 23983. If this level remains unbroken over the next 2 weeks and the upward momentum continues for a while longer, we might not need to reverse our position, allowing us to achieve 80% of the profit potential and prompting us to exit the trades for this monthly series.

Currently, our position reflects an accumulated, unrealized profit of Rs 32,000. Our goal is to close with at least Rs 66,000 in profit for this month, using only Rs 7.5 lakh as margin money.

Cheers and happy trading.