The Big Question- Where is NIFTY headed

NIFTY has been subject to a lot of speculation over the last couple of weeks owing to recent volatility and another test to take out the top. NIFTY marked a psychological high just below the famed 9k mark.

Then we have had a decent sharp correction testing the recent uptrend. There are multiple macro factors in play in upcoming time which will also shape up how markets are behaving.

One of the big factors that has gone unnoticed is that the corporate loan market in India is not really picking up and most corporate are on a bond buying spree. What this means is that corporate are not really looking at business expansion and are playing safe (i.e. they see no demand).

                                       Syndicated Loan Data (Source:Bloomberg)

This doesn’t auger well if we are looking for markets making new highs or if we expect India to be growing at over 7% GDP as earnings will soon fall behind. ( The data suggests that from a loan point of view we are at the lows of 2008)

This will of course mean further pressure on the central bank for rate cuts and that can pump up the markets.

Let’s now look at this from a technical perspective. NIFTY futures have been largely trading within this channel since Feb this year. A breakout or a breakdown outside this channel will lead the next round of market moves.

                                                    NIFTY Futures Daily Chart

Now, why did we choose to write this now? Well here is another interesting analysis. We have done a quick analysis where NIFTY futures formed an Inside candle two days in a row (What this means is that the subsequent two days candles are within the range of the first day). The white dots represent the occurrences.  We had 5 such instances in the last 1 year and 2 of them being in September along. Most of this has always been preceded by a big price move. So brace up for that and this can be a good trading opportunity keeping the channels in view.

There are two seemingly important impact events over this week (FED and BOJ ) this can be a catalyst but eventually markets take their own course once the dust settles and many times most of these are factored in barring surprises as well.

BankNifty near term trade analysis

 BankNifty in range of 18900 to 19070. Breakout of this range will move to 19180 and above it 19360, on downside it can slide to 18580 below 18900 which will make Nifty fall below level of 8500.

Automated Investing & Trading with Mechanical & Systematic Trading systems

Automated Investing and Trading has been a revolution of sorts in the Investing world. PowerTrades automated systems gives you the power to generate profits for you while you are away, working sleeping or travelling.
Many investors have already tried some systems in the markets, which are not tested for different scenarios and end up failing in one situation or the other. Powertrades has designed and handpicked professional trading systems that have serious return potential and can provide an emotion free stress free alternate source of revenue for investors. Our systems have been tested over 20K data points for consistency.

Change the Way you Invest and trade for ever:
• Profit in bear markets
• Beat the markets in the Bull Markets
• Fully Automated Risk management in Trades
• 100 % emotion Free Investing
• No Monitoring or softwares  required
• System is active even when you are away
• Diverse portfolio and Increased Income

Investing and Trading typically becomes risky or a loss making venture when we dont use a proper method for entry and exit with defined money management or when investors become emotional about positions and losses.
Our systems have been thoroughly tested for consistent returns over different market conditions. This factors in even overnight volatility and movements. We use a special blend of handpicked systems that combine various conditions to take an entry and exit decisions. The money management is automatically updated by the system and varies based on different market conditions and volatility.

Over 2015 our Algo system has generated the following return:

 

 

www.Powertrade.co.in  has introduced a new feature where you can trade with our mechanical System through our algorithmic infrastructure. The infrastructure is hosted in our servers so it doesn’t require you to be manually present or active all the time. You still get summarized view every day and have access to your account all the time.

Trading Strategy Cost: 15,000 INR/ Annum
Monthly Server cost: 500 INR/Lot
Trading Underlying options: NIFTY Futures / BankNifty Futures/Crude Oil Futures


Get Started in 3 Simple Steps:
1. Register with Powertrade. To know more call +91-9038216000
2. Open a Trading Account & select the Underlying you want to Trade
3. Account is mapped to our systems and Your Live.


To know more reach out to us at +91-9038216000 or Email us at support@powertrade.co.in

Know more about our Trading Solutions & Systems, Visit www.powertrade.co.in or connect with us at twitter @powertrades &
 Facebook: www.facebook.com/powertrade.trading

Where are the Markets Headed Next? How to handle the Volatility

BankNifty Futures: 18th was a copybook trading day and fortunately we were on the right side of the trade as well. check our pre trade analysis at (https://www.facebook.com/powertrade.trading/)

This can be primarily be attributed to conviction in the plan as much as right analysis for the plan. Why did we mention that 17140 is a key zone?( we know the market reaction once that was breached)

If you check the hourly candles there were multiple instances when that was respected and it was building up supply there. beyond that we saw a straight dash to 16900, to be honest the ease with each was broken was surprising.

BankNifty Futures Price Chart Analysis

Now whats next?  The new Trend decider now is 16940-50 levels if you observe the charts.  until we manage to hold or trade below it pull backs on intraday basis can be shorted.  Downside targets can be near 16650 or lower. It will be key to observe whether the breach today was an aberation or a build up of new trend. Hence prudent would be to see how that level is treated. If markets moves and holds above it can give a good pull back trading opportunity to the contrarian players. 

NIFTY Futures: Just yesterday we discussed that 7850 continues be the achillies for NIFTY and until convincingly taken out we are not going to see aconclusive breakout. On the downside we discussed a break of 7820 can provide a low risk trade and what a trade it was , a trade which yielded nearly 80-100 points with a 30-40 points risk.  now that NIFTY has breached 7800, 7780-7800  range will be the trend decider. If markets sustain above it expect a reversal in trends.Below it markets will continue to trade in the direction that has emerged today. 7850 will be a tough swing hurdle going forward. A break above it will only signal a resumption for the bulls

Why is it Going to be Tough for Trend Traders

Why the PullBack Today Post Results may not be a great news for Trend Traders

As again markets seemed to prove again to be ahead of the elections and the subsequent results. Now since the event is done it will be crucial to try and analyze the potential direction of the markets post the results.

In our various posts for the past week or so we had mentioned that 7950 is a potential downside target and break of that could only signal another downside trend. (http://tinyurl.com/nus8van)

The fact that markets scaled back to the levels despite a sentimental gap down proves how important that zone is. Also the fact that it didn’t take it out yet means bears may still be remotely hopeful for a potential resistance.

But what it does is brings us back to the congestion and directionless zones of 7900 on the downside and near 8150 on the upside. This will mean for the coming few sessions until either of the levels is cleared trend traders are going to find a tough time ahead.

NIFTY Futures- Post Results Trading ideas

This is also confirmed by the fact that despite expected volatility the INDIAVIX( indicator for volatility) today fell sharply and corrected -12.5% on an intraday basis.

The good part is for discretionary contrarian traders this may provide good pull back trade opportunities at a low risk with either of the upper or lower band as a stoploss.

If you intend to still trade the trend advice would be to wait for a clear of either of the levels on the upside or downside and you will get your move.

Stay updated on market analysis and potential trade ideas at either our facebook page (https://www.facebook.com/powertrade.trading) or our twitter handle (@powertrades)

Wish you all a very happy safe and a prosperous festival of lights ahead 

PLUG N PLAY AUTOMATED TRADING- CONSISTENT RETURNS IS THE KEY

Trading is a tough activity, the key is not only to enter the trades at the right time but to trial the trades in a systematic manner to gain big in good trades. For this a traders needs to be guided through in a systematic manner, especially he is doing trading part time or tracking multiple scripts. One cannot manually handle all and yet efficiently leverage all opportunities

Our guided trading systems provide as a perfect ally to a trader to help him through the enter trading process, as to when to initiate a trade, how to trail it and when to book profits. These systems can be both run manually and also be fully automated with complete hands free trading. 

If we are using automated tools and solutions in all other sectors, why not when it comes to trading, where efficiency and execution ease can lead to dramatic improvements in returns.

Introducing our advanced Smart Signals Trading Program:

The need for a rule based systematic trading is so much more now given the market volatility and the uncertainty ahead.

Try out automated trading strategies & trade hassle free in a rule based systematic manner.

Plug n Play Algo Trading

Smartsignals ‘plug and play’ algo-trading functionality allows traders to ‘Plug’ into an algorithm/ simply choose a profitable strategy, choose what to trade and active the trading Robot. Get Start With Fully Automated Trading From Day-1

Low Cost Auto Trading Platform- Start Automated Trading from 1100 INR Only

Manual Trading
Platform Charges	0 INR	0 INR
Data Charges	500 INR/segment	500 INR/Segment
Strategy Charges	Free (30 Days)	2,000 INR
Total Cost/Month	500 INR Only	2,500 INR
Fully Automated Trading
Platform Charges	1100 INR	1100 INR
Data Charges	Free	Free
Strategy Charges	Free (30 Days)	2,000 INR
Total Cost/Month	1100 INR Only	3,100 INR

Click to Download Form

To learn on how to design/understand system based trading programs: write to teampowertrade@gmail.com 

To know more about our  advanced trading systems visit http://www.powertrade.co.in/smartsignals

# The free offer is a limited period offer on a first come first serve basis

OPTIONS STRATEGY FOR BUDGET. LIMITING RISKS WITH UNLIMITED GAIN POTENTIAL

With the budget just a couple of days away traders are gearing up to capitalize on the event. But for now the run up to this budget has been unusual. We didn’t have much of a an usual pre budget rally so far. Hence markets are not able to provide any sense of direction. Hence is difficult to take a one sided trade. Hence the need for a covered trade.

Our chief options strategist recommends this Bullish Call ratio spread. The strategy is meant for traders who want to bet on the upside an believe markets can go after this budget or in this series and yet want to cover himself in case the markets go down.

The strategy is prepared by buying a far call in a different ratio and selling a near call at the same time

Strategy Construction: Long 8800 CE March series (2 Quantity) + Short 8700 CE March Series (1 Quantity)

The benefit with this strategy is that maximum loss is limited to -256 INR per pair of trade, while the gain potential is unlimited. This will mean irrespective of how much the market falls the max loss will not exceed -256 for the trader.

Strategy performance v/s NIFTY:

Total Investment: 255

Total Debit: 155

Max Profit potential: Unlimited ( Profit at 9200: 155 INR, Profit at 9400 : 345 INR )

Max Loss: Below 8800 at -255

Upper Breakeven : 9055

Here is a detailed snapshot of strategy performance v/s the underlying:

NIFTY Options Strategy performance/ Underlying