Muhurat Trading 2024: Rahul Ghose suggests this strategy to trade Nifty options | Stock Market News
Source: Live Mint
Muhurat Trading 2024: The The Indian stock market witnessed a significant correction in October. The benchmark indices Sensex and Nifty 50 have fallen more than 7% from their record highs last month.
Nifty 50 is trading around the crucial level of 24,400 after witnessing a pullback rally from the recent lows ahead of Diwali 2024. As the market gears up for the festive season, the exchanges prepare for the annual Diwali Muhurat Trading session, a one-hour event held on Diwali.
This year, the Muhurat Trading timing is 6 PM to 7.00 PM on Friday, November 1, as announced by BSE and NSE.
For the auspicious occasion, Rahul Ghose, CEO of Hedged.in, suggested a low-risk Muhurat trading strategy for Nifty options.
According to Ghose, Nifty 50 has taken support at 24,100 levels and seen a dead cat bounce, however, on a longer timeframe, the index is still with a status of sell on the rise.
“Also, the momentum indicators are in the oversold region, which can also give a chance for a quick bounce to the resistance levels at 24,500 levels,” Ghose said.
With the view bi-di, he suggests a low-risk Nifty options strategy from hedged.in which makes money if the Nifty 50 index falls below 24,000 or goes above 24,600 by the end of November 14 weekly expiry.
Even if the Nifty 50 does not move in either direction, the max risk in the trade is ₹1,000 only, Ghose said.
Here’s Muhurat Trading Strategy for Nifty options by Rahul Ghose:
Nifty Bi-di Spread
Trade Structure:
> Buy 1 lot of the 28th Nov expiry 24500 PE at CMP
> Sell 1 lot of the 14th Nov expiry 24000 PE at CMP
> Buy 1 lot of the 14th Nov expiry 24200 CE at CMP
> Sell 1 lot of the 14th Nov expiry 24600 CE at CMP
Trade Rules:
The capital required in the trade is ₹51,000. This trade can be entered today if Nifty 50 is trading between the levels of 24,200 and 24,300. The maximum loss in the trade is ₹1,000 and one can look to exit with a profit of above ₹1,500 per set, Ghose said.
Trade Modifications:
According to Ghose, if Nifty 50 goes above 24,600 levels, the sold Put can be brought higher by 100 to 200 points, to get more credit, making the trade safe.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
