NIFTY VIEW FOR 14/09/2011

Today Nifty moved within the gap created earlier and nearly closed it.A positive for sign but close is at nearly the same level.So no gain or loss status quo maintained.The isolation gap of two days was filled by price forming a bridge which creates a possibility to walk over it.Whenever a gap closes fully it creates a hope.So lets hope that this gap gets closed fully and we get a close above 5060 to think about up move.Today intraday stop losses may have been  hit for many traders.Its part of game to take small losses and be ready to enter the same levels again to catch the trend for the intraday.The levels given are valid for the whole day so can be entered again.Whenever stop loss is hit one should be ready to reverse the trade.Few days it will happen twice or thrice it will hit our stop losses.So when in doubt !Stay out !We are at the same level again so I would call it a inside day if we consider the range of two days which shows indecision in markets.4950 is the level above it which we are positive for the day.In such markets a strangle option strategy can be executed by selling 4900pe and 4900ce with buying of  5100ce and 4700pe and hold till expiry or exit in profit as per risk profile!This strategy works when the volatility is high and at the money options are quoting at unconvincingly high premiums!

Levels to watch on Spot Nifty :
No trading zone between 4959 to 4923 to avoid whipsaws.
Buy above 4959 with SL of 4944 for targets of 4976 - 4994 - 5011- 5036
Sell below 4923 with SL of 4938 for targets of 4906 - 4888 - 4871 - 4847
Happy Trading !