Intraday Banknifty

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Beware, even in intraday the market can gap down, especially in illiquid instruments like options. Irrespective of the type of order, If your trigger price is jumped in the gap down or gap up then your order will not get executed.

In both the cases shown above, the market gaped down in 5 min interval, then it went up higher and lower. So if the trigger price was missed during the gap down, it would have got executed within the next 5 mins. Odds and patience were in your favour.

We can infer that, the odds of such gap downs are once or twice in a 100 times. Still it is significant, if you are carrying more contracts. You have decide between automation, and risk when you are using such orders.

What I have learned in many trade with Bank Nifty Intraday Trading: SL is your real profit and Profit is your rewards against your patience and workout.

Calculate the loss you have booked till date and compare with it what if you have put SL in each loss.

So, you realize your real profit.

@Qrious_Kamal are you saying that even SLM will not be triggered ? Because I think SL limit has chances of skipping but SLM definitely gets triggered.

@Stonecold
In the market there is probability for everything. Even if something has an odds of 1 in 1000 times, it can happen. We all see there is regular gap down and up between each days, and we can say with 100% probability that 13/07 will open with a gap up/down. The trigger prices in the gaps will be ignored, correct?

Zoom in to Intraday time line. Lets assume the odds of price gap in 6.5 hrs intraday interval is 15 out of 1000 trades, which is 0.015 probability. So it is safe to assume that trigger price that you give will get triggered. Still, there is a Black Swan like chance for the trigger to be missed. Definitely is an misnomer in a market place where uncertainty is the norm.

The exchanges try their level best to maintain the continuity between prices in the intraday. They are measured based on how effectively they can do that. Even then, we see atleast 2 to 3 points discontinuity in intraday. And with HFTs, and quants becoming active, one has to be vigilant.

I think I have a doubt here whether trigger price of SLM will be executed in case of gaps or not. Maybe @nithin can clear this doubt.

No solution.
Edit: you’d have to grow against these

In a Cover Order, either SL Limit or Target Limit only can be added. BO is blocked by Zerodha. In GTT order, Twice happened to me in GTT history - triggered the SL but skipped the “SL Price” and so faced huge loss. @beherat

Why doesn’t zerodha start bracket order

Could somebody please guide me, how to copy the support & Resistance levels drawn on Nifty Futures to Atm Call or Put? I just want to know the support & Resistance figure on Atm call or Put.
@leodecaps @maddy_Des @Gurly7 @rahulkhanna @trader_dude @sekhar916 @saurav106 @abhi9392 @ShubhS9 @leodecaps @vishnux

You are doing it wrong. What ever analysis you have to do, do it on underlying chart (Nifty) not on Options chart.

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I agree with you, but suppose in Nifty (Index)11120 target calculated as Target, how to calculate that position in Options.
@ShubhS9

Set an alert for your Target price on Nifty, once that alert is triggered, square-off your Option position.

You can use Sentinel to set alerts.

Thanks for the reply. But after entering into a position, wish to enter Target & SL as per the Nifty in advance. @ShubhS9

Sorry, but I want to differ. There are ppl who exclusively trade options charts. They trade those charts using trendlines, patterns etc.

support and resistances are usually candle High/lows, right?
So open spot future chart. Open option chart beside it.
Now see the time of the candle which high/low you chose to sr lines.
See the hl of corresponding candle in option chart.
Draw the lines

Option price is driven by lots of variables like Delta, Theta, Vega and IV.

Taking all those into consideration, isn’t it better to trade Options according to Underlying price movement rather than doing so by looking at Options price chart?

2 Likes

Sir, see today’s market.
Now reevaluate your statement!
Have you seen today’s PA?
Do you still think market works on charts?
Charts are for us, as our brain require some visual medium to comprehend data, and validate our biases.
There are complete developed ecosystem of such traders based out of pune. They even trade straddle charts.

Also in Interactive brokers you can trade options based on price condition in spot/future etc
I trade the same way.

For eg. I can order - buy Nifty call if reliance price is above xyz.

Oh great, Open Nifty & Call or Put chart side by side, same time frame, as per the Nifty candle mark support & Resistance. Great, this is the best solution for for Support & Resistance. This did not come to my mind. Thanks a lot @maddy_Des

Wow! Possible to trade on such conditions? This is a new information for me. I tried to open an account (to view chart like in in.tradingview.com) with IB but because of the long list to fill, stepped out. Thanks dude. @maddy_Des

1 Like