Market Analysis of 15-Dec-2010 and stratergy for 16-Dec-2010

Market Analysis of 15-Dec-2010 and stratergy for 16-Dec-2010

Nifty at 5992 looks little bit weak. Nifty did violated 5880 on intraday basis but manages to close above it.Upside 5940-5960 is a tough resistence zone.

Market today has taken a u turn from 5942, i.e 38.2 % retracement of 6338/5690 and 61.8 % retracement of 6069/5721 and breached 5895 ( 50% retracement of 6060/5721), next target is 5853.If 5850 is breached then prevoius low can be touched.

6000 call has got max OI at 82 Lakhs and 5700 put has got max OI at 81 Lakhs.Unwindeing is seen at 5900; 5800 put which indicates downside support is getting weak.

Option Analysis Nifty range 5700-6000 with negative bias.

Chart formation is showing bearish evening star candle pattern, which is negative.

Stratergy for 16-Dec-10

1. Sell nifty SL 5960, T - 5853/5800/lower

2.Sell nifty 5900 call, keeping SL of 5970 nifty spot.Carry the position on weekend and close the position Monday.

Thanks and Regards
Subhag Ghosh

http://niftyfutureandoption.blogspot.com