Market Analysis for 13-Dec-10 and stratergy for 14-Dec-10

Market Analysis for 13-Dec-10 and stratergy for 14-Dec-10


Nifty at 5907,Technically the market has generated a trend reversal pattern and so we could see an up move as long as the market manages to stay above 5760 levels. Resistence seen at 5955/5995; with 5850/5800 strong support.

6000 Call has seen long buildup with Max OI at 79 Lakhs contacts, which caps market upside to 6000.

Shorting is been seen at 5700 and 5800 Put with 78 & 72 Lakhs OI.Downside is capped to 5800 to 5700.

Market Range : 5700-6000.

38.2% of fall from 6338 to 5690 is comming around 5937, and 21 sma is comming at 5928.

Nifty to face tough resistence at 5930-5960 range.

Market stratergy for Tue 14 Dec 10

Sell 5800 PE and 6100 CE, total premium earned 60+38=98, this stratergy is safe upto

5702 on downside and 6198 on upside, and is profitable in this range.

As the market is likely to consolidate and settle down in this range, as volality will decrease, preminum will fall drastically.


Thanks and Regards
Subhag Ghosh