NIFTY OPTIONS RULEBOOK

NIFTY Options Trading Strategies: Rules and Checklist

Use this five-minute checklist to understand Tez Signal NIFTY options trading strategies through its documented Momentum and Dot dashboard workflows. It is a product reference for independent review. Tez Signal does not provide personalised investment advice, place broker orders or guarantee outcomes.

Updated 1 November 2026 · All session times are India time · All levels are premium points

BEFORE THE SESSION

Complete these checks before considering any setup

01

Load and verify

Select the 5-minute plan. Confirm source freshness, broker access, Sound setting, available account entitlement and an independently affordable rupee-risk budget. Historical Replay is for prior sessions with usable source data; current-day Replay is not enabled.

02

Use completed data

Blinking M or Q scores are provisional. Nearby cards may help prepare a contract, but wait for completed TXT confirmation, a ready score, the valid time window and the actual trigger. Do not enter from a blinking score.

03

Set quantities and records

Use one lot for an eligible Q6-Q9 Dot under this plan. Set Momentum quantity before entry from the risk budget. Verify current contract units, brokerage, taxes, spread and slippage assumptions.

POSITION RULES

Two NIFTY options trading strategies, kept separate

An open Momentum position does not block an eligible fresh Dot entry, including on the same side or same contract. Keep at most one Dot position at a time and at most one Momentum trade per day. No averaging and no automatic reversal.

Each method keeps its own entry price, quantity, stop, protection, trail and result counters. If both use the same contract, a broker may show combined quantity and an average price. Maintain separate records and manage each method from its own fill. Budget the combined rupee risk before accepting concurrent positions.

Original triggerFor both methods, planned entry is original confirmation High plus 3.
Limited validityUse only the next four candles. Cancel an unfilled setup at expiry.
No chasingDo not chase more than 2 points above the planned trigger.
Separate exitsExit closes that method's quantity only; it does not automatically close the other method.

OPENING MOMENTUM CHECKLIST

Five-minute Momentum rules

M1

Eligibility

Do not use Momentum on Wednesday. It has no FIRST-DOT FILTER or 10:00 start requirement. Ignore the 09:15 candle and inspect only the first completed green candle after it for each contract.

M2

Range and score

Display High is 80 to 180. For a qualifying trigger, High must be 100 to 147 and High plus 3 must be no higher than 150. Prefer a qualifying High near 140. M1/M2, Pending and N/A are skipped; only ready M3/M4 may qualify after all checks pass.

M3

Trigger and lock

Enter only after the signal candle completes and High plus 3 triggers within the original next four candles. The first actual qualifying trigger locks the side. If it is Limited or not ready, skip Momentum for the day; do not use a replacement strike or an opposite-side second trade.

M is a Futures-support count, not a probability or Q score. A marker, card, colour, dip before entry or disappearing card is not an entry, stop, exit or reversal instruction.

DOT CHECKLIST

Q-score, timing, premium and Distance rules

Q1

Score and time

Skip Q1-Q5. Q6-Q9 share the green eligibility display, but green is not entry permission. The original Dot must be labelled 09:45 or later; fresh entry must be strictly before 13:00. On Wednesday, FIRST-DOT FILTER must be Qualified.

Q2

Original confirmation

Original confirmation Close must be 100 to 140, with operating entry premium 80 to 180. Select the original candle: H is its High, L is the lowest low of that candle and its prior two completed candles, and D equals H minus L.

Q3

Distance and stop

Skip D above 30. When D is below 15, initial stop is L minus 2. When D is 15 to 30 inclusive, initial stop is actual entry E minus 20. Use actual fill; do not widen the applicable branch.

Dot entry checklist

Use H plus 3 only within the original next four candles, clipped at 13:00. Do not chase more than 2 points. Cancel the unfilled setup if original structural L minus 2 is breached before entry. A next-candle Q upgrade can qualify only if the original setup is still valid; it does not change original H, L, expiry or Futures status, and does not resize an open position.

MANAGE EACH OPEN POSITION

Stops, Amber and normal trailing

Never widen a stop. Momentum starts with E minus 15. Dot uses its Distance branch. At E plus 20, both methods protect at the highest of the existing stop, E and the latest completed five-minute low minus 2.

After protection, trail using the previous one completed five-minute low minus 2, raising only. Retain the entry floor and any tighter stop. Exit the full quantity for that method when its active stop is reached, or by 14:45. There is no fixed target, EMA exit or partial booking in this plan.

Amber applies only to Dot within the first two completed five-minute candles after the original confirmation. Its warning High must be at least original High minus 1; warning Low minus 2 may tighten the active stop only. It is not a new entry, retry, Momentum rule or reason to widen a stop.

Actual fill ECalculate protection from actual entry, not an assumed chart fill.
Stop touchExit at the active stop; do not wait for a candle close below it.
Amber limitationUse completed Dot warning data only inside its two-candle window.
End of sessionExit all remaining method quantities by 14:45 or sooner if required by the broker.

FAST TRAIL AND TRIANGLE ALERT

Do not confuse the two-candle fast trail with a later triangle

01

Fast-trail timing

For either method, a fast one-minute trail may activate only in the first two five-minute candles after the original signal. Count from the original signal label, not entry time or a Q upgrade. The signal candle itself is excluded.

02

Both conditions required

At the same time, price must reach E plus 40 and current five-minute candle open plus 30. If this occurs within the allowed window, trail from the previous completed post-entry one-minute low minus 2, retaining any higher existing stop.

03

Triangle is only an alert

The light-green blinking triangle marks a large move in the dashboard's assumed open position while the candle is green. It may appear later than the first two candles, but a late triangle does not permit a late fast-trail switch, a new entry, reversal or automatic exit.

The dashboard uses a rule-based assumed position and cannot know the broker's actual fill or whether a user exited manually. Earlier triangles remain historical annotations after assumed exit. Use the broker position and active stop for any independent action.

FUTURES STATUS AND DASHBOARD USE

Record Futures alignment, do not treat it as an added rule

For a selected original Q confirmation, the info box may show Futures Aligned, Not aligned or Pending. This forward-test observation is optional: it does not add Q points, hide a Dot or block an entry. Keep the original candle and timeframe when recording it, including after a next-candle Q upgrade.

In the dashboard, CE is Aligned when the matching original Futures candle closes above its open; PE is Aligned when it closes below. A flat candle is Not aligned and missing or incomplete data is Pending. This is different from Momentum Direction and the displayed daily index change.

EMA, expanded charts and drawing tools are viewing aids. EMA is not an exit rule. The enlarged one-minute view does not itself activate the fast trail.

Live or ReplayConfirm the loaded mode, session date and timeframe before interpreting a score.
SoundAudio depends on browser permission and completed-data publication; it is not a timing guarantee.
Card behaviourProvisional cards and card removal are presentation states, not broker instructions.
Historical limitsReplay shows completed information at its cursor and cannot prove a live fill was executable.

AFTER EACH EXIT

Update the Dot counters and journal

Stop fresh Dot entries after three total wins or two total losses, whichever occurs first. A protected entry-cost exit after E plus 20 is neutral for Dot counters even if charges or slippage make cash P&L slightly negative. Other exits use realised net result: a profitable protected trail counts as a win, a losing initial or Amber exit counts as a loss, and exact net break-even is neutral. Momentum results do not affect Dot counters.

Record actual entry and exit, method, contract, score at entry, original signal time, Futures status, stop changes, exit reason, fees, net P&L and In rule or Out of rule. Do not increase size to recover a loss. Evaluate rule-following separately from profit.

Independent decision and risk reminder

Options can result in substantial losses. Market data may be delayed, incomplete or revised, and stops can fill worse than displayed levels. Scores, markers, alerts and examples are automated observations, not recommendations to buy, sell or hold any security. Verify contract units and actual costs independently.

QUICK REFERENCE FAQ

Common rules questions

Can Momentum and Dot be open together?

Yes, an eligible Dot may coexist with Momentum, even on the same contract. Keep each method's entry, quantity, stop, trail and records separate, and budget the combined rupee risk. Only one Dot position is allowed at a time; Momentum remains limited to one trade per day.

Does a blinking triangle mean I should act?

No. It is an attention alert for the dashboard's assumed position after a defined large move. It is not a new signal, an automatic exit, a reversal instruction or proof of a broker position.

What happens if a Q score upgrades?

Only the immediately next candle may show an eligible upgrade. The original High, Low, Futures status and expiry remain unchanged. Do not restart the window or resize an open Dot position.

Can I use a future Replay candle to support an earlier decision?

No. Review only the information available at the Replay cursor. Historical candles do not establish live publication timing, intraminute order, liquidity or broker execution.