QUANT SYSTEM TRADE RECOMMENDATION - 27.03.22
- Capt D. Ganesh Raja
- Mar 27, 2022
- 2 min read
Dear Friends,
Nifty last closed at 17153.00 and I still don’t have not enough confirmation to give fresh recommendations. However, I would like to focus on Bank Nifty which looks weak, especially private bank space. Private banks have a very large weightage in Bank Nifty and hence can be a good proxy. Bank Nifty closed at 35410 last Friday. One can short at these levels with stop loss at 37125.0 and target of 31977.0, leverage 1x. I can give short recommendations in private banks but index is a better bet.
People who wish to trade in options can buy 34500 strike put, expiry 21.04.22, which was last traded at 743.3, leverage 0.01x and sell 3800 strike call, expiry 13.04.22, which was last traded at 228.0. leverage 0.01x. Capital exposure no more than 1% in each option trade.
India VIX has been forming higher highs higher lows since 23.07.21 and this coupled with Golden cross and Elliot impulse wave, seems an explosive combination. All these indicate fall in markets. I had a look at CBOE VIX at around 20.8 levels, which is also indicating something similar but I don’t have the individual chart to analyze with my Quant system and just had a look in the websites.
Gold: Last close – 51,876.0. There is no change in my view on Gold and continue to hold long positions. Possibly up move might resume this week.
As I had indicated previous week, I have built long positions in commodity-based ETF in the Investopedia trading competition.
As far as DJIA & Nasdaq are concerned I will try to update again during the week.
RETURNS TILL DATE SINCE 04.07.20 : 63.34% (AS OF MONDAY 24.03.22 CLOSING)
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