priceNpedia

did one adjustment.

Created butterfly - bullish one

resistance broken

Current position

25640 should act as support today as well.

Weak structure in Midcap Nifty - Price closed on a weak note. 13730 is a major resistance.

since the legs are at 26000 CE/PE - is a round number so that problem is also taken care of.

only problem with broken fly is that if it goes aganist u..... then two of ur legs will end up deep in the money

same payoff can be created with call ratio spread as welll... that one is a better option if you are not sure about direction...since i was confident about upside so i created a broken fly.

so even with 50 % accuracy — there is huge money

In the above trade if it goes aganist me .. my max loss is 5k & profit is 59k... so risk reward is - 1:11

initiated a broken wing fly in nifty

During this process i booked the intrinsic value & hence locked by profit / decreased the loss

Exited - 83000 CE & bought 83100 ... This has reduced the loss on the down side.

Nifty support at 25540

Todays rally was led by BN & IT index /Reliance showed good recovery

excellent reversal in BN... lets hope it continues tomorrow. !!!!

strong closing in nifty as it has managed to close above 25640 levels.

Am expecting a bullish reversal from here... so took a position via butterfly