Book Profit in Long NIFTY 6200 Call Jan 2011 Expiry @ Rs. 85 - 31 Dec 2010

Book Profit in Long NIFTY 6200 Call Jan 2011 Expiry @ Rs. 85, Buy Call given @ Rs. 49.55 on 28 Dec 2010. Current Market Price on 31 Dec 2010 Rs. 85 at 02:40 PM. 

Book Profit in Short NIFTY 5900 Put Jan 2011 Expiry @ Rs. 25.50 - 31 Dec 2010

Book Profit in Short NIFTY 5900 Put Jan 2011 Expiry @ Rs. 25.50, Short Call given @ Rs. 70.85 on 28 Dec 2010, Stop Loss Rs. 90. Current Market Price on 31 Dec 2010 at 2:18 PM Rs. 25.50.

Stop Loss Triggered in Short NIFTY 6300 Call Jan 2011Expiry @ Rs. 45 - 31 Dec 2010

Stop Loss Triggered in Short NIFTY 6300 Call Jan 2011Expiry @ Rs. 45, Short Call given @ Rs.26.25 on 28 Dec 2010.

Major Support & Resistance of NIFTY Spot - on Jan 2011 Expiry Basis

Major Support & Resistance of NIFTY Spot - on Jan Expiry Basis:-


Resistance:- 6231.78, 6361.71, 6617.03
Support :- 5846.53, 5591.21, 5461.28


Break - Even Point :- 5976.46


Short Term Player as well as Long Term Player can take long position at this level for upside, but Stop Loss for Short term player will be 5976.46 and for long term player it will be 5846.53.


"We should not forget that NIFTY Spot tried to touch the last four month support (from July 10 to Dec 10) which was 5720 suggested in 08 Dec 2010 post but NIFTY touched 5721.15 on 09 Dec 2010 and recovered very smartly to 6100 till now."


"Please Keep in mind what I have said about NIFTY Cycle on 28 Dec 2010"

Trading Support & Resistance of NIFTY Spot - 31 Dec 2010

Trading Support & Resistance of NIFTY Spot - 31 Dec 2010 :- 


Resistance :- 6118.05, 6135.25, 6162.10
Support :- 6074, 6046.15, 6029.95


Break - Even Point :- 6090.20


As I had said on 28 Dec 2010. If NIFTY Spot crosses 6034 - 6050 and sustains at least two days at these levels, then we will see new high in the market. What did happen in last two trading sessions, NIFTY Spot not only crossed these levels but also made the level 6100 and closed at 6101.85 on 30 Dec 2010. 


Now it is sure NIFTY will touch some magical levels in coming months with the volatility of 100 to 125 Points both up and down side. But I am not seeing the NIFTY Spot below 5800. NIFTY will maintain this sensational level and direction will be on upside. I have also doubt that NIFTY will cross 6300 level by Jan 2011 Expiry.  


But, long position can be built at this level for upside with Strict Stop Loss 5885.


"Please keep in mind what I have suggested in NIFTY Cycle on 28 Dec 2010 Post." 

Market Cycle or NIFTY Cycle

There are following Phases of Market Cycle or NIFTY Cycle:-

1. Optimism
2. Excitement
3. Thrill
4. Euphoria
5. Anxiety
6. Denial
7. Fear
8. Desperation
9. Panic
10. Capitulation
11. Despondency
12. Point of Maximum Financial Opportunity
13. Depression
14. Hope
15. Relief
16. Optimism

Above 15 Phases come in sequence order, from 16 phase it is repeated and come in order.
We can easily understand this Cycle form this graphical presentation:-

If we see the 5 years from 27 Dec 2005 to 27 Dec 2010 movement of NIFTY, then its clearly indicates that at which phase we are in present.

NIFTY in different phases under Market Cycle

From the above chart its clearly states that NIFTY is under Thrill phase or between Excitement and Thrill phase. It is sure that we will touch the new high in coming months. But after we should also prepare for next phases.

Current Trading Strategy in NIFTY Spot (Positional Call) - 28 Dec 2010

As I have said in my 24 Dec 2010 post that if NIFTY Spot crosses 6034 - 6050 and sustains at least two days at this level, then we will see new high in the market. Today on 27 Dec 2010 NIFTY Spot touched 6045.75, but finally corrected form that level  and closed at 5998.10. Now from some trading sessions market is in confusion. We are just waiting for up side, but it is not happening. 

If we see the movement of NIFTY Spot from 24 Nov 2010 to 24 Dec 2010, Its clearly shows how much NIFTY Spot has recovered from its low level 5766.50 on 08 Dec 2010 to 6000 till now. There is much stability in recovery mode. its clearly indicates that NIFTY is on Upward movement and will touch new magical level in coming days but we should not ignore the level 5885, crucial level as well as crucial support for NIFTY Spot, If it breaks then market will be in bearish mode again. So be alert regarding this level and go for upside taking these level as stop loss.

NIFTY Spot Movement from 24 Nov 2010 - 24 Dec 2010

So we can take following trading position in NIFTY Spot on Jan Expiry basis:-

Short  ITM Put  + Long OTM Call + Short OTM Call, Means,

Short NIFTY 5900 PUT Jan Expiry @ Rs. 65 - 75, Current Market Price on 27 Dec 2010 Rs. 70.85, Stop Loss Rs. 90 + Long NIFTY 6200 CALL Jan Expiry @ Rs. 41 - 55, Current Market Price on 27 Dec 2010 Rs. 49.55, Stop Loss Rs. 20 + Short NIFTY 6300 CALL Jan Expiry @ Rs. 24 - 30 , Current Market Price on 27 Dec 2010 Rs. 26.25. Stop Loss Rs. 45

    

Marry Christmas to everyone...........................

Marrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrry Christmas to everyone...........................

From NIFTY ANALYSIS

Sorry for Updation............ 27 - Dec - 2010

I am sorry to everyone that i am not getting time to update the blog, because of busy schedule, but i want to say about the market in near term, if NIFTY Spot crosses the 6034 - 6050 and sustains above these levels at least two days, then we will see new high in the market, but after there is a probability of huge downside.don't take any short position in NIFTY. Take long position at downside near 5940 - 5965, with strict stop loss 5900 - 5885. I am not giving any call. I am only suggesting and guiding...

Proud to have a good pageviews of NIFTY ANALYSIS - 21 DEC 2010

Proud to have a good page views of NIFTY ANALYSIS from these countries specially FOR INDIA and UNITED STATES in four months from Sept 2010 to 21 Dec 2010.


I have started this blog on 14 Sept 2010.


Countries and their Page views :-