What a fantastic bullish day for Nifty. We are close to profit booking.

On 8th April, because of a ceasefire announced between Iran and America, and with an assurance of opening The Strait of Hormuz, the global appetite for risk returned everywhere. Nifty 50 opened with a gap up of 730 points with a doubt in everyone's mind if this strong move could sustain or not. To our surprise, Nifty remained strong at that level for consistent period and thereafter showed even more strength as the day progressed. At closing, Nifty was slightly below the day's high (24025) and a little shy of 24000.

Today at the time of this writing, Nifty is witnessing a but of profit booking which is natural after such a powerful up move. Right now the benchmark index is down by 200 point trading around 23795.

However, the MHAF chart has formed a nice bullish candle indicating the bull run is not over yet. As per our strategy, we are sitting at a comfortable distance from the potential reversal point which is at 22482. At that level we will be reversing the futures trade to take a bearish position while leaving the short call option untouched.

Our floating PNL is sitting at Rs 1,11,000 and we are waiting for the targeted profit of Rs. 1,29,000 to achieve before liquidating both the positions. However, if that is not achieved and we need to reverse the trade as mentioned above, the new profit target (usually higher) will be different than this.

Cheers and happy trading.