NIFTY OPTIONS TRADING NOVEMBER -DECEMBER 2011 STRATEGIES

HI friends,

Let the Business begin,

Here is my motive I am just gonna put market outlook i.e nifty outlook and strategies to be followed by a high risk trader ,moderate risk taker.Trader has to trade according to his risk capacity.Ideally at start don't put too much money on derivatives.Trade with your profits.I may or may not put charts. 

Nifty Outlook November Month -December Month 2011

Daily Basis:- On day to day basis Nifty has still not topped out.So there is moderate bullishness is still left.So on Monday 31st October one can Buy 5500 November CALL with exit at 5450-5475 levels.This is fast and furious short term strategy

Weekly Basis:- Nifty on weekly Basis is already reached the resistance But as daily trend is still intact so this week nifty may likely hit the resistance zone of 5500-5600.So weekly traders who are already on longs need to book profits at 5475 -5500-5600 and wait for further signals.If nifty ends week around. 5400 in spite hitting 5500 then on weekly charts downtrend remains intact.But if nifty is not going below 5400 considerably on week ending basis then signal warning as new uptrend may start.Confirmation will be nifty remaining above 5400 in next week also.I will post what to do further in my next post.Below 5200 buy 4600 November PUTs with exit at 4700 levels as one has to confirm about the further short signal.

Another strategy:-Once nifty hits 5500 zone just enter conservative short by buying 5200 PUT November ,this is very short term as nifty may find support at 5400 so this trade exit is at 5400.

Options Writers will SELL 5800 November or December CALL and relax this trade will guarantee 100% success as nifty cant break these levels.

Monthly Basis:-Nifty was trading in a long term bullish channel since recession bottoming out and larger trend was broken when we made high of 6300 and moved down as far as 4700.So long term channel is broken and Downward channel is started.Monthly traders need to watch for levels of 5400 .Break of 5400 in any month will lead to 4600 support zone.So now Monthly traders same thing buy 5500 PUT DECEMBER OR 5000 PUT DECEMBER and wait and watch levels of 5400. This is not a tip Larger trends don't revert just like a snap.Long term Monthly traders are still short.

Thus combination of week and month will give you success for sure.But Overall 5000 and above nifty staying above that zone will make a start of new bullish trend.I will inform you if trend reverses.

Comments expected.Share your views.

Adios for now.!!!!!!!!!