Nifty: Will it be a contrarian trade at this time?

We are giving here one contrarian trade which we never want to have in our trade bag at this point of time. But wise trader must have atleast one contrarian trade against their own view.

Before that we look at what is happening in markets currently....

Market Update: 1. PCR showing strenght, all series PCR is 1.39 & current month is 1.64 which is bullish sign.
2. Open Interest is increasing with price appreciation which is positive sign too.
3. FIIs buying showing strenght ahead.
4. Nifty has broken its long term down trendline today, atleast it should cross by 2-3 % from here to form conform long term bull trend.
5. Overall market is in uptrend, & everyone is thinking same that market will go up & up
It is the time we should stay long with some kind of backup, & below trade can be good backup or u can say a contrarian trade.

Buy Nifty 5300 Put & sell 5100 & 5000 Puts (each strike option in equal quantity)

OR

We can have option strategy with bullish leg like Buy Nifty 5300 Put & Call both & sell 5100 Put. Total Premium Paid is 185, breakeven is above 5485

This strategy has limited loss (Max. 185 Points) & unlimited profit.

See syllabus for Technical analysis training in Mumbai,India.

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