NIFTY - MAX PAIN OF ALL STOCK AND HOW TO TRADE

Max pain is the level where expiry should happen so that the buyers have maximum loss. Data shows that almost all the stock are trading above the max pain level for this month. This data usually remains the same between Friday and Tuesday. Keeping an eye on this, it seems that the market may remain bearish or sideways for the next two days.

1. Whereas overall sentiment of the market is bullish, but max pain for the next two days shows bearish to sideways action.

2. How to trade tomorrow? - No trading before 9:23 a.m. Mark 2.08 p.m. candle of last trading session, 9:23 candle of tomorrow sell below the low of these two candles and if price of any stock crosses high of these then buy only.

3. Mark 1.49 p.m. candle and buy above high of this candle only.

Conclusion: Trade between 9:23 a.m. and 1.49 p.m. only, if price goes down from 9.23 candle the let it go down and watch till 1.49 and buy otherwise go into the opposite direction.

Disclaimer: I am not a SEBI Registered Analyst. Please consult your financial advisor before making any decision. I will not be responsible for any of your profits/losses. This is only for educational purposes.
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