NIFTY SPOT ANALYSIS - 08 DEC 2010

NIFTY SPOT ANALYSIS:-


If we see the market on 07 Dec 2010. It shows too much volatile and clearly indicates that the market players have confusion about the direction but see some negative trend.




If we see the trend from 25 Oct 2010 to 06 Dec 2010, Its clearly indicates that market is trying to go up and cross the level of 6070 - 6100 but its not getting success. But when see the trend from 06 Sept 2010 to 06 Dec 2010, Its clearly indicates there is major gap between 5800 - 6050. Last time from 24 Nov 2010 to 26 Nov 2010 NIFTY had broken its major support 5820 and after it recovered from this level and made the high of 6030 on 02 Dec 2010 but became down from that level and made the low of 5939.70 on 07 Dec 2010.


So all over picture indicates that trend is downward with some volatility. So on the basis of above market picture we can take following trading in NIFTY Fut :- 


1. Synthetic Long Put
2. Covered Put (For Risky traders)
3. Bear Call Spread
4. Long Call Butterfly


1. Synthetic Long Put means, 


   Short Future + Buy *OTM Call
*Out Of-The-Money


2. Covered Put (For Risky Traders) means,


    Short Future + Short *OTM Put
*Out Of-The-Money


3. Bear Call Spread means,


Buy OTM Call + Sell ITM Call


4. Long Call Butterfly means,


 Buy 1 ITM Call + Buy 1 OTM Call + Sell 2 ATM Call