NIFTY approaches 16800 - sharp reversal?

• Multiple supports at 16800, however tremendous selling momentum to the downside could carry it just below to 16750
  
• 16800 is the 2 ATR level as well (which is rarely broken even in the sharpest of falls) - looking back 3 years
  
• Cover shorts at 16800 - then wait for the next move. If nifty heatmap shows sustained green / buying across stocks then sell a put spread at 16800 to play the bounce
  
• Once the market does bounce / fails to bounce at 16800, we will take a fresh view
  

Dagangan ditutup: sasaran tercapai:

Worked out really well as the 16800 level was tested. Covered the long puts and sold put spreads (small quantity) in Banknifty. Hopefully goes back to the 21 EMA - thats the 17300 level. Will see what happens if and when we reach 17300