NIFTY options trading strategies for MARCH 2012

hi,

   Friends sorry for delays i was little busy.What really happened i have depicted in my chart an unusual and extended stay by nifty in the top zone on indicators got everyone fooling.

I incurred some damaging losses on puts.But as i said learning must go on staying on sidelines is not our ball game.Some people joined the rally late while some entered early in the rise.This is typical of nifty not letting earn money so easily.

Now what is decided is not to skip the EMAs and pivots which people dont use in a perfect trending market.

Now going ahead pivots and ema's will play cruicial role.

What to do now.

1)Daily:- Everything was going on nicely but now nifty seems to approaching the channel bottom.

              A close below 5385 and below means a small bear run till 5200.

             Now as i said feb closing is important now that baar has closed nicely above the the long term  channel so now 5200 will act as a minimum support line for daily if it goes below 5385.

              Below that long term people will again short and exit.

              RSI the reliable friend also has indication of going down.

              RSI was real culprit see in the charts extended stay fooled people whether to hold shorts or exit.

 

2)weekly:- Weekly on MACD shows signs of little trouble but weekly also has enuf buffer to keep the new trend intact.So weekly can only be in danger below 5100 now.So any fall till 5100 will not have any problems.Overall the rise trend remains.

3)Monthly:- Has to keep the guard for 3 more days.Monthly has to remain above 5200 as said to keep his hopes alive and chances of the same are high.

4)So below 5385 short only if we are helding on closing basis ofcourse u can enter puts on daily basis also but if we close above 5385 the exit puts .buy 5500 call again.

    But chances of 5200 in short term are high so buy 5300 puts as said above with stop loss given.

Now long term bull run to remain so once we reach 5200 again u can enter calls like 5200 5300 5400 but a closing below that just exit. strict stop loss.

SO follow the game plan if 5 ema is turned up then exit shorts.

THanks keep sharing my site.