check for swing reversal.. to down side

Previous day trading shows that markets are facing strong resistance at nifty 3720 level. Two times markets took correction about 100 points at this level. FII data, F & O writings shows that steam at this level is over. As we are nearing the election D day, may be operators are ready to en cash profits.  Global cues are positive now. But Indian cues may not be that much stronger for the next week.

But tomorrow we may see positive opening and a good chance for buying puts at lower rates. If Monday is positive Tuesday may not be. Even if markets crosses 3720 the range may be another 5% from there.  So anticipate fall either from 3720 or 3880 levels.

Target trade:  Buy puts 3400, 3500 on Monday evening or Tuesday morning for handsome gains to the end of the week.

20-4-2009 review...

Today's trading is also in line with the previous 2 days, just rise and profit booking. Huge open interest decrease in nifty future, FII cash buying, 3300 put writing. Global cues are negitive. There is no down side build up in futures. Hence, this fall may be a correction only. May be the fall is up to 3250-3150 as expected. Sensex levels are 10600. We may rise up linked with reliance result???.

rally continues...

As per previous day's trade markets crossed major resistance level by a big jump and nifty closed at 3211 +151 points. Nifty crossed major trend line of the entire bear phase. To break this once again a major event is required internationally. Every thing is positive as of now. FII data, F & O writings, nifty future open interest are all showing that markets will go up further. Let us see for the next resistance level 3450 zone. But, even if we see a correction it will be up to 3200 only. Global cues are all positive and no signs of easing the steam. Hence, go long in calls but nifty may not cross 3500 before it gets a considerable correction.