Nifty View for 22.12.2011

What a move out of the blue on nifty.Thats uncertainty at its best and always expect such moves here hedging your position counts  but needs extra cost.This is a reversal seen on nifty but needs more confirmation.No shorts now till break of 4600 on spot nifty.Expect confirmation of reversal on break of 4750 on upside and close above it.One could consider out of money calls as per risk appetite for expiry.An interesting expiry is on hands again.The days price action has covered nearly two-thirds of the 3 day fall in one day which sounds alarming for bears.A close above 4750 may trigger short covering/profit booking.A buy on dips strategy will work till it does not break 4600 on close.Any close above 4813 (50% level) will try to take out 5000 for expiry(Santa-Claus Rally?).Intraday traders can use the levels given below..

Spot Nifty levels for intra-day trade on 22.12.2011
No trade between 4676 and 4710(to avoid whipsaws)
Buy above 4710 with SL of 4690  for targets of 4728-4745(breakout  level on the upside,add positions)-4762-4779-4796-4814-4831-4848.
Sell below 4676 with SL of 4696 for targets of 4659-4642(breakdown level on the downside, add positions)-4625 -4608 -4591 -4574- 4557- 4540.
Happy Trading !