Nifty bounced back but can it sustain?

Today, getting support from the global cue, Nifty 50 opened gap up and steadily rose up to 24850 but due to some selling pressure towards the end, closed at 24766. It is still going through the ebbs and flows based on the contradictory news feed coming from different war fronts without caring much about the technicals or fundamentals.

Despite such a strong up-move, the MHAF candles on our chart is giving no immediate signal of a bullish reversal. It might take 2-3 days to appear that signal only if Nifty does not retrace but continues to move higher from now. We have no action to take and our upside reversal point still sits at 25854.

As per the spreadsheet we are following the trailing stop loss for the hypothetical Futures Only strategy now sits at 25057. The unrealized profit from that position would have been 815 points (Rs 2,11,900 with 4 lots). However, in our real strategy, because of the profit restriction we are imparting due to the opening of a contra position with 25300 PE, our unrealized profit is sitting around 95k.

Despite today's big up-move, our position did not suffer much from yesterday because India Vix has come down by more than 15%, reducing the sold put option price. We are waiting for either the upside reversal cum breakeven point to come or to get out with 80-85% profit of the maximum potential which will be around 115-120k.

Happy trading, Cheers.