Current Trading Strategy on NIFTY Spot - 12 Jan 2011

I had said yesterday that because of debt crisis in Europe specially on Portugal matter, this pressure can more panic the Indian Market for further clarification and strictly suggested not to take any long position in NIFTY. Firstly watch the NIFTY, see the trend if NIFTY is taking support at definite level then take long position but Stop Loss should be strict. I had suggested Stop Loss 5720  for the current level but NIFTY broke this level today and make the low of 5698.20 in panic situation but finally took support on 5750 on technically. See the movement of NIFTY Spot from 03 Jan 2011 to 11 Jan 2011It is the third time when NIFTY has taken Support at 5750. 

NIFTY Spot Movement from 03 Jan 2011 to 11 Jan 2011

NIFTY Spot 6 months Movement from 09-07-2010 to 11-01-2011

"If we see the 6 months movement of NIFTY Spot from 09.07.2010 to 11.01.2011, its clearly states that Ist time on 26 Nov 2010 NIFTY Spot had taken Support on 5751.95 and had become upward to 6011.70 on 02 Dec 2010, IInd time on 09 Dec 2010 NIFTY Spot had taken Support on 5766.50 and had become upward to 6157.60 on 03 Jan 2011, and IIIrd time on 11 Jan 2011 means today again NIFTY Spot has taken Support on 5754.10 and can become upward to 6084.65 on technical basis. But the Global and domestic trend is not looking positive. A technical bounce back is possible from the current level but there should hedge position also. "

So, following position can be taken in NIFTY at Current levels :- 

Buy NIFTY 6100 Call March Expiry @ Rs. 115 - 130, Stop Loss Rs. 90 + Buy NIFTY 5600 Put Feb Expiry (Hedge Position) @ Rs. 85 - 100, Stop Loss Rs. 65.