Market stratergy for 17 Jan 2010.

Nifty (5654) is clearly in downtrend, and has closed below 5690.Nifty has fallen by 542 points in last 10 days, and was unable to cross 38.2 % of retracement.
As I have already mentioned in by 13Jan post on niftyfutureandoption.blogspot.com/2011/01/market-analysis-and-trading-stratergy.html and nseguide.com, the market is week and you should short nifty keeping a sl of 5882 for a target of 5600, the market unfolded in the expected way. 
5600 call saw a huge writing with open interest raise by 457 % and price falling by 40 %.Max put build by is seen at 5600 with 88 L contacts in open interest.
200 sma is 5605, and market is expected a support from 5600.
Nifty is expected to bounce at least by 20% to 38.2% of the fall, i.e 5747 to 5846 in comming week.This time should be utilized to liquidate long position and create fresh short for a target of 5500-5350 in comming month.
I will personally short nifty on every rise, keeping a stoploss of 5882.

Stratergy only for monday is based on bounce back, as the market is clearly oversold and huge call writing has been seen, can expect a short covering.
1. Buy 5700 call for a target of 100+, SL 5595 nifty spot.
2. Buy Nifty future at current level, sell 5800 call and buy 5600 put. Book profit in the zone of 5750-5800.