morning thoughts..

The markets have seen the poison and effect of the major transit on 15th November and made a new low for the year 2011 and again bounced back to give some sigh of relief to the bulls.
Technically the markets remain in deceptive zone with oversold rsi and is likely to swing like a pendulum trapping both bears and the bulls.
On technical parameters and options data is clearly visible that there is lack of conviction on bigger shorts and people are adding out of money call options at dips and panics and exiting quickly but not creating major shorts at higher levels.
So the trading strategy would be buying on dips in out of money call options in indices and stocks.
However one must keep in mind that the swings will be volatile and must be quick to book off their profits.
The markets have also shown signs of double bottom in past few days and which implies that multiple bottoms can be made in the coming months in a range.
The markets will surprise everyone in coming months with a big move.
The supports for the nifty is at 4750 levels and resistance at 4900 levels.
The supports for the sensex is at 15900 levels and resistance at 16400 levels.



Yesterday’s calls sent via sms and messenger

Nifty – buy at cmp 4790 sl 4775 targets 4850 , went 4877.20

Nifty 4800 ce – buy at cmp 115 sl 105 targets 160 , went 184.55

Idfc 110 ca – buy at cmp 4.25 sl 3 targets 7 , went 8.20

Gmdc – buy at cmp 176 sl 174.50 targets 180 , went 180.25

Idfc – buy at cmp 108 sl 106.50 targets 111 ,went 114.65

Sail – buy at cmp 84 sl 83 targets 87 , hit sl

Operator Financial Tech – buy at cmp 585 sl 570 targets 650 , went 666

Fii Educomp – buy at cmp 181 sl 175 targets 225 , went 228.90

Jackpot Amtek India – buy at cmp 84 sl 81 targets 100 , went 98