Moderately bullish Nifty in intraday!

At present Nifty is hovering around the usual levels of 5250-5260, if i see only the line chart i see a downward channel which could be broken on the upside anytime once the Euro markets open, and if they open in +ve note and show strength, then we could see some upside to 5290-5300 levels in Nifty.

I see 5249 as support and below which 5230 is possible, for today.

Nifty put option gave good returns!

We exited from the put opiont today at 60, fetching Rs20/lot in the option, although the exit call could not be given in the blog due to delay from my side.I was myself busy in the market and forgot to post the exit call from the option.It was a busy day today.

I would like to mention a few things about the calls given on this blog in the end of day of the market.All targets given are for your information only, once your initiate a buy/sell on any of the calls either for equities or for futures or for options, please make sure when you are in profit dont wait for the targets, as i might sometimes forget the exit call post on this blog.

Also please remember to follow/apply stop loss.

And lastly i am giving all this information on the basis of technical analysis and my 8yrs experience.

Now lets come back to options, why i exited from the 5100 put at 60, is because, the indian stock market  at present is going through a phase of uncertainity in trend, as the world markets are itself moving in a sideways manner, also since this is an OTM put, which means Out of the money put option, which has mainly time value, its price will fall fast if Nifty remains in a small range.I dont see much trend in coming days, but yes Friday 15th 2010 is an important day to watch.

Options data indicate a little more upside in Nifty!

Options as we call wasting assets, are a very powerful tool to find a trend of a particular financial instrument been traded on an exchange. According to my interpretation i find that Nifty has a strong support at 5000-5100 and a strong resistance near 5400-5500 levels. Nifty is expected to remain in this tunnel for some time.
At present there is an intermediate resistance at 5300 which wont be difficult to break, its reliance, and other heavyweights which might cause some hurdle in initial stages.

Bounce back in Nifty soon?

US has accepted the bad/harsh reality of unemployement crisis at present and the news was also not that good, still Dow Jones managed to close above 10600 after a long time, and this has signaled a good indication that some more +ve side is left for the world markets on the upside.

On the whole, all is looking bright for indian stock market as well, Nifty and Sensex are poised for a small bounce back, which could lead nifty to 5300+ levels on monday itself.
I am +ve on sugar,hotel and IT sector.

Unemployment News is the trigger!

The unemployment news from US of A is expected, which could come today or tomorrow, and that will trigger a one sided direction for Dow jones, and will certainly affect Nifty and BSE sensex as well. At present i dont see any technical analysis favoring our markets, we are all dancing to the tunes of World Markets, especially this week, our indian stocks have moved in tandem with world indices, and this is very natural as well.
I would bet on IT,STEEL,TEA,HOTEL stocks if market rallies.

Nifty overstretching its rally.

Its not clear where the reversal is possible in Nifty or at what price level, but at present the charts don't offer any heavy continuous buying indication, a Doji on the top or new high shows some guidance that if NIFTY closes below 5240 in coming days then we might witness 5150-5100 on any day as well, all this is possible in Jan month only.

I see some resistance at 5330 levels.

I suggest a Put Option to be bought for Nifty of strike price 5100 around Rs40 and i expect it touch Rs80-90 if we see 5150-5100 in coming days.Yes this is a naked put.Max loss Rs40 per lot,Max profit is unlimited, but for 5100, i see 50-60 per lot, the Risk to Reward ratio is not in favor of doing this exercise, but i maintain correction is not far.

Near flat and a dull market today!

Dow jones index at present reacting to a flattish trend today with a modest loss opening. Weakness is visible in the charts but a sideways trend is also visible. 10500-10580 has become a good short-term trading range, where the index was mostly oscillating in past days as well.

A similar pattern came out in Nifty, in indian stock market as well today, with a flattish movement and only some Tea and Steel stocks performed well.

I expect some stability in Dow jones from here on, but i will be watching 10470 closely and see where it goes, but i dont expect any sharp correction in this week.

Best of Luck!