Day: December 19, 2021

ROI Nifty

Dec21-W2: Swinging with the swings

Nothing much spectacular about the week even though the results are cool. I rate an annualized ROI for week above 52% as a very awesome week. Anything above 35% is good anyway. Therefore, I must understand how this happened. I think it was due to high VIX. Even though I incurred loss on 17500 CE call option and had to manage it similar to how I handled situation last week, overall profit for the week turned out to be good. I need to make the most of all these high VIX days. I don’t think I would get such good returns when VIX is low.

So I traversed through the following candles during the week:

Here are the results  

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 11809.08Rs. 1046605.611.13%79.22%2655.63%

The following is breakdown of week’s positions:

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.

Nifty Dec21W4

Dec21-W4: Downtrend to trend? (Dec 20 to Dec 24)

What I said last week wasI usually use this combination to say that Nifty’s mean reversion is done and the previous trend shall resume now.’ I was right but I did not expect to be so right so fast. I was actually expecting Nifty to rise up a bit more before falling down.  

Now the following is my analysis for coming week based on what I am looking at (You may want to open image in new tab or save it for better view)

Since Nifty did not waste much time in resuming its downtrend, I don’t see why the downtrend should even pause. The momentum should only increase and eventually we may see Nifty around 16000 level but perhaps not this week.

Scenarios for the week ahead (highlighted as yellow box with red and green lines dissecting scenarios)…

ScenarioAnticipated Price Action
ConsolidationBetween 17300 and 16650
DowntrendIf breach below 16650; to drop somewhere till 16150
UptrendIf breach above 17300; to rise somewhere till 17800

UK and US citizens are struggling with Omicron while their economies are struggling with inflation. What a struggle. No wonder, Nifty too is struggling.

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.