NIFTY options trading strategies for FEB 2011

hi friends,

               I was busy since some time due to other work but as i said nothing has changed.Nifty has already climbed the Everest and its aiming for sky now.But the problem is after 900 pts move and still no correction.

Nifty current week Bar has closed above the channel resistance and it can aim much higher but caution is the key.Moving averages and MACD has slowed down at top and no clear signal of heading down still.

As i said monthly chart will be the key now any close below 5200 means back in the channel and again things can get bearish and people will call this a fake breakout.

Other case breakout is confirmed and market moves ahead but market has shown yearly like movement rite now only.So surprises lie ahead.

5381 had been classic resistance level for market and last time also after breakout of 5400 no one thot it was a breakout so people are busy.

So mean time use pivots as i said a close above 5405 and above keep 5400 call buy.But a close below day pivots at 5383 or week pivots at 5375 likes means people will exit longs and enter puts so until and unless this game of 5400 does not get resolved nothing can be said.

Any close above 5400 on monthly basis confirms a breakout and prompt for buys.

so keep on fluctuating between puts and calls as pivots move.

If there is good opportunity to short then i will write no matter what .

4700 put buyers i am also going in losses so we will treat it as bad trade and move ahead.

I have made few refinement on my study to reach a more accurate conclusions and next time onwards there will be no such bad trades.

happy trading.

bye