Technical Analysis

Recommend going long on NIFTY with a tight stop loss at 2750

NSE NIFTY Technical Analysis

NSE has moved towards its target of 4650 levels. However it traced back from the resistance level. It has to close above 4670 to make any decisive move. I expect the sensex to move sideways for a few more days. Further reduction in crude price could be one trigger. Growth has already slowed down, however this may have already been factored into the price. June IIP growth nos showed a Q0Q increase and should be higher July onwards due to base effects.

The question is, Has the drop in growth has bottomed out?'.

Options Trading Strategy: Write 'On the Money' calls cover above 4650-4670. Buy Put options (out of money)

August 13, 2008

NSE NIFTY - Resistance Levels

It would take some real triggers for NSE NIFTY to break through. It has strong resistance at 4450 level. Post that it would encounter resistance at around the 4525 to 4540 levels and the second at 4650 levels. If it breaks above these levels, nifty could see a huge upward swing. But to close above that would require huge positive fundamental triggers.

Options Strategy: Buy Put options, Write Call Options at 4450

August 4, 2008