Panic selling resumed today but support came later

Today Nifty opened with a gap down of whopping 580 points clearly confirming the fresh panic emerged due to the sudden surge in crude oil price (from $90 to $115) and reported shortages of stocks globally. The market remained under pressure during most of the day but upon receiving some good news from the media about a quicker than expected resolution of the ongoing war.

In the later half, getting good support from the bulls, Nifty inched up by 380 points from the day's low and closed at 24028. However, the MHAF candle chart above we are following is still showing consistent weakness by forming a strong bearish candle with a long up wick. As mentioned yesterday, we have no position now with the F&O strategy and will resume looking for fresh opportunity in the next month only.

Our hypothetical position involving Futures Only strategy follows the spreadsheet shown above which gave us a target price of spot Nifty 24067 to book profit from our short position (from 25580) and we assume that we did book the profit at the corresponding Nifty Mar Future price at 24000 (comfortably when Nifty spot was around 23900). This made us a decent 1680 points and considering we are trading 4 lots 9same as F&O real positions) of Futures, we made a whopping Rs 4,36,000 profit from this trade. So far this is much higher than the Rs 1,14,000 profit we made in this month from the F&O strategy we are following with real money, but please remember that we have 3 more weeks in the monthly series and more trades on the hypothetical portfolio may be taken which may either reduce this realized profit or may further boost our account balance. We will keep on tracking the markets and take future hypothetical trades with daily updates on their reasoning.

Happy trading, Cheers.