Current Trading Strategy on NIFTY Spot @ 6071.65 on 15 Nov 2010 - Buy NIFTY 6200 Call & Buy NIFTY 6000 Put

As i had said Market is very volatile. whatever happened today on 12 Nov 2010. Its clearly shows the dramatic seen which has been created by market players.

NIFTY movement from 08 Nov 2010 to 12 Nov 2010 

NIFTY Movement from Oct to Nov till now

If we see the movement of NIFTY Spot from 08 Nov 2010 to 12 Nov 2010 in NIFTY movement from 08 Nov 2010 to 12 Nov 2010 chart. Its clearly indicates that Market is looking in very bearish mode, specially movement from 11 Nov 2010 to 12 Nov 2010. But if we see the movement from Oct 2010 to Nov till now. Its Clear indicates that NIFTY in Nov jumped from 6092.22 to 6312.45 and again down from 6312.45 to 6092.22 or below level. Means to say its to much volatile and market has filled the gap between 6092.22 to 6312.45.

So we can take following trading Strategy in NIFTY :-

Long Strangle means Buy *OTM Call + Buy *OTM Put

* Out -of-the- money

Buy NIFTY 6200 Call @ Rs. 30 - 45 (according to Risk level) Stop Loss is Rs. 15 + Buy NIFTY 6000 Put @ Rs. 50 - 65 (according to Risk level) Stop Loss is Rs. 30


Caution :- Market is too much volatile, so be very cautious while taking position in NIFTY. Please note that 6025 or 6010 or 5987 these are very crucial and turn around levels in NIFTY Spot, NIFTY can be "U" shape from these levels. So for long position in NIFTY, all these levels can be stop loss for long side traders at current level. So keep eye on NIFTY. But I Strongly believe NIFTY Spot will be above 6100 by this expiry.