NIFTY options trading strategies for 16th December 2011

hi friends,

               Trying to catch every rise and fall is not a task of CALL/PUT buyer.Trying to do this demands to enter in huge quantities .This happens when ur mind feels that markets will behave exactly you feel and market reverses and gives tremendous frustrations.Even if u catch a normal 400 pts rally in nifty every month u make thrice.

I was saying the same that we are in middle zone so buyers beware.But i wonder seeing the posts people are still purchasing calls.No offence you may be going by your analysis but markets are in such a mood that no support is taken and no resistance is unbreakable.If u want to enter in middle zone enter with 10% of ur capital.I have made such mistakes and so i know the amount of time and energy is consumed in recovering from losses.

Now what are we doing tomorrow RBI policy people are calling judgement day.But ideally speaking RBI policy cannot stop rupee breaking new highs I was just seeing dollar chart and it has confirmed a breakout and so rupee if doesn't stop the rise we are going down.

Only positive aspect for bulls is Reliance chart ,stochastic show reliance hitting oversold zone.Now how much they utilize reliance to bring markets up is a huge question.Any sharp moves on either side for reliance is not good for hedgers.so its like a wait and watch.Most indicators i follow are in middle area but nifty stochastic is below the zero line.

So may not be tomorrow but more the people believe 4700 is gonna stay more FII's are making a recipe for nice barbequed bulls.They are gonna enjoy that bull Meat on Christmas.

so i have written calls and enjoying because until and unless we get some good confirmation there is not point in going long on calls or puts.

still time is not lost tomorrow if we get some rally write calls.

any questions ask them.

bye