Nifty Analysis of 20 Dec 2010

Nifty (5947), the market looks sideways bit is good for trading,the market is now typically sideways.
The crucial support on the downside for the Nifty is 5900 and resistance at 5995-6050.

6000 Call has got Max OI at 78 L adding 6 L contracts, shows shorting/ call writeing, 6000 will act as strong resistence.

5800 Put has got Max OI at 86 L adding 3 L contacts.Max addition of 9 L contacts was at 5900 put, showing strong buildups.5900 will act as strong support.

Nifty range: 5800-6000, till expiry.

If market remains positive in comming days then the targets are 6014/6090.

Trading stratergy,

1. Sell 5900 put at 52 and 6000 call at 56; total preminum 108.

LBP: 5792, HBP: 6108, the stratergy is max profitable, if nifty expires at 5900-6000 range. SL 5800 on lowe side and 6100 on higer side.

2. Buy 5900 call at 110 and sell 6000 call at 52.As 6000 hold max oi, nifty is expected to expire at 6000 level.

Thanks and Regards,
Subhag Ghosh