Live Intraday Trading on Expiry Day

TL;DR

Learn how to trade on expiry day for Nifty and Bank Nifty using specific strategies based on market profiling and open interest analysis.

Transcript

hi good morning everybody it's great to see you all here and i'm very excited today since it's an expiry date markets are up i think the markets have opened gap up and it's crazy it's bottomed out last week the trading action was great and today we have jay people also know him through by the name nifty wizard where uh he's gonna discuss how actual... Read More

Key Insights

• 🤗 The market opened with a bullish gap on expiry day, suggesting positive sentiment.
• 🪘 Both Nifty and Bank Nifty are near supply zones, cautioning against long trades in those areas.
• 😥 Rejection patterns in the market profile can provide entry points for potential long trades.
• 🥳 It is advisable to trade options after 1:30 pm on expiry day for better risk management.
• 🤩 Understanding open interest can help identify key levels and potential trade opportunities.
• ✳️ Risk-reward ratio is crucial, and traders must focus on managing risk effectively.
• 🧘 Position sizing and scaling can help manage risk and maximize profits.

Questions & Answers

Q: How can the supply and demand zones be determined for Nifty and Bank Nifty?

By analyzing the market profile and looking for rejection patterns, traders can identify supply zones where selling pressure might occur. These zones can be observed on both Nifty and Bank Nifty charts.

Q: What is the recommended strategy for trading options on expiry day?

For Nifty, look to buy call options if the price pulls back to around 17,250 or 17,300 with a stop loss below the rejection point. For Bank Nifty, buy call options if the price pulls back to around 36,200-36,300 with a similar stop loss strategy.

Q: Why is it advised to enter trades after 1:30 pm on expiry day?

Entering trades after 1:30 pm provides better momentum and reduces the risk of slow price movements or unexpected stop losses. It allows for improved risk management and increased chances of profitable trades.

Q: How can market profile help identify rejection points?

Price action in the market profile can show signs of rejection, such as tail-like patterns or specific candlestick formations like hammers. These can indicate that the market is rejecting certain price levels and may reverse from there.

Summary & Key Takeaways

• The market opened with a bullish gap on expiry day, indicating positive sentiment.

• Both Nifty and Bank Nifty are currently trading near supply zones, with caution advised for long trades in these areas.

• Market profiling can help identify rejection points for potential long trades, with stop losses placed below the rejection points.