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

On 18 June, the Nifty 50 showed strong bullish behavior despite starting the day with a 40-point decline. By the session's end, Nifty had risen by 82 points to reach 24,168, notably closing above the previous swing high of 24,090 recorded on 26 May. However, on 19 June, Nifty experienced profit-taking following a remarkable rally over the past five days. It opened with a significant gap down of 179 points and continued to drop by another 90 points before a sudden recovery near the session's end, closing at 24,013, which was only 155 points lower than the previous session's close.

This week on Monday, 22 June, Nifty demonstrated strength right from the start with a 94-point gap up at the opening. It began at 24107, found solid support at 24073, and gradually moved up towards the 24150 level. The MHAF chart supports this bullish trend by displaying consecutive green candles, as illustrated above. It also suggests that the profit-taking on Friday, 19 June, was not significant, as indicated by a slightly weaker yet still green candle with a lower wick.

The trigger calculation spreadsheet shows that a new bearish move will only be confirmed below 23770 for today and 23860 for tomorrow. With the monthly options expiry approaching on June 30, just 9 days away, our strategy required us to close all open positions when the sold call options delta reached 0.55, which occurred this morning with Nifty at 24120. In this monthly series, we previously recorded a loss of Rs 80,600. However, after securing a profit of Rs 1,02,300 today, the net profit for this month stands at Rs 21,700. With a margin reserve of Rs 30 lakh, this results in a return of less than 1% for the month, which is not impressive. Nonetheless, given the significant volatility experienced during the June series, we consider this a satisfactory return.

We are currently waiting for the July series to begin and for a new directional bias to develop before proceeding with any further actions. We anticipate that July will offer more stability following the conclusion of the Iran war, allowing us to achieve higher profits more smoothly.

Cheers and happy trading.