In June series Nifty started fresh down move. Sell level triggered

On Friday, 29th May, Nifty experienced a sudden reversal towards the end of the day, signaling the first trend change for the new June series. After closing all trades in the May series with a small profit, we had been anticipating the emergence of a new trend, which appeared to occur on Friday. Nifty formed a strong bearish candle, closing near the day's low, and the MHAF candle also confirmed the reversal.

The sell trigger for the day was set at 23,701. However, in this strategy, we don't sell immediately at the trigger point. Instead, we wait for the closing price to confirm the trend's strength. In this instance, the price dropped significantly towards the 23,500 level, validating the signal, accompanied by a favorable increase in the India VIX. Additionally, the premium on Nifty futures surged to nearly 250 points during this period of high volatility, providing us with a good opportunity to initiate the month's short position.

Accordingly, we shorted Nifty futures at 23735 and shorted June 23500 PE at Rs 307 premium. This position gave us a maximum potential profit of 542 points (equivalent to Rs 1,41,000) with a breakeven cum reversal point to the upside at 24042.

In the coming days, our task will be to stay alert for any significant upward movement in Nifty to determine if we should shift our position bias to the long side. However, it seems likely that the market will continue to decline in the near future. If we can realize 80% of the maximum profit potential at any time, we will close the positions for this month.

Cheers and happy trading.