Nifty consolidating with a bullish bias. We have booked profit from closing all the positions for this month

On 18 June Nifty 50 displayed strong bullishness despite a negative opening by 40 points. By the end of the session, Nifty was up by 82 points at 24168 and more importantly this closing was above the previous swing high of 24090 made on 26 May. However, on 19 June Nifty witnessed profit booking after the fantastic rally over the previous 5 days. After a massive gap down by 179 points it kept on falling by another 90 points before a sudden recovery came near the end of the session when it closed 24013, down by only 155 points from the previous session close.

This week on 22 June Monday Nifty showing strength from the very beginning with a 94 points gap up opening. After opening at 24107 it found good support at 24073 and inched higher towards 24150 level. The MHAF chart is confirming this bullishness by forming consecutive green candles as shown above. It also indicated that the profit booking of Friday 19th June was not a major one by forming a slightly weaker but still a green candle with lower wick.

The trigger calculation spreadsheet is indicating that a fresh bearish move will be confirmed only below 23770 for today and 23860 for tomorrow. Because we are near to the monthly options expiry coming up on the 30 June which is only 9 days away, our strategy dictated us to close all the open positions when the sold call options delta reached 0.55, which happened today (with Nifty at 24120) morning. In this monthly series we have previously booked at loss of Rs 80600, therefore after booking a profit of Rs 1,02,300 today, the net profit achieved for this month is Rs 21,700. By reserving a margin money of Rs 30L this translated into less than 1% return for this month which is not great. However, considering the high level of volatility witnessed during the June series, we believe this is still a satisfactory return.

We are now waiting for the July series to start and a fresh directional bias emerges before taking any further action. We hope that July will bring more stability after the Iran war is over and we can secure higher profits in a smoother way.

Cheers and happy trading.