Huge gap up and psychological figure of 5000 touched but could not sustain it today.Now if open gap up again short near 5050 and hold with suitable stop loss for positional call as I expect some correction till 4870-4850 levels which may try to close the gap and build steam for next move.Now the range has expended to 4600 to 5000.So above 4800 we are in positive and no shorts are to be taken yet.Targets for Nifty look in the zone of 5150-5200.If markets try to close at the higher on Friday expect huge weekly profit booking at the end.I expect some correction next week so try to book your profits or hedge suitably.Next week may be a different ball game so do not let yourself into a trap.We can have afresh look again in next week.Today no trades possible for the day as per levels given.But for positional call huge gains, hope readers benefited from it.
Spot Nifty levels for intra-day trade on 02.12.2011No trade between 4919 and 4954(to avoid whipsaws)
Buy above 4954 with SL of 4934 for targets of 4972-4990-5007-5025-5043-5061-5078-5096.
Sell below 4919 with SL of 4939 for targets of 4902-4884-4867-4849-4832-4815-4797-4780.
Happy Trading !
Nifty seemed to break all bounderies today. But somehow this upmove doesnt seem convincing to me. Still holding my shorts nd boked some longs today. ur advice nd guidence plzz
ReplyDeleteHi Neelimaji,
ReplyDeleteyou can wait for my levels for 05.12.2011.This call was for positional traders.If your are stuck with shorts in this series you can buy Jan series future and hold till your level in Dec futures is achieved.No extra margin will be charged to your account.This will lock the spread which is called calender spread.You can also sell 5100pe(as discussed earlier which has provided handsome intraday gains from open of 205 to 120 ie 85 points per lot) with suitable stop loss which will avoid further loss if nifty moves against your shorts in this series.You can refer the levels for Monday as and when they are updated for further guidance.Thanks for your feedback.
Regards
K B Raut
If your are stuck with shorts in this series you can buy Jan series future and hold till your level in Dec futures is achieved.No extra margin will be charged to your account.
ReplyDeleteI m not able to understand what u mean by this. Yes I m stuck with my shorts in futures nd if i buy january futures how is it possible that i wont b charged extra ??
Hi Neelimaji,
ReplyDeleteYes as your holding the calendar spread only one nifty margin is charged.Ask your broker for it.
Regards
K B Raut
Sir, I did not know this. As u mention it is spread, can this be called hedging also ?? Can we relate or put "Future-Option" and "Future Spread" on the same boat??
ReplyDeleteRegards
Sandeep
Hi San,
ReplyDeleteYes it is 100% hedging as you lock the difference to pocket it.Roll over at the end of series or when the spread is maximum near the expiry.It should be 35-40 points.You are protected against the gap up and gap downs in this spreads.The main advantage is to manipulate the positions at the end of anticipated swings.For example the high of 5400(book longs and add shorts) and low of 4633(book shorts and add longs).This also can be used to short options at the end of swings.Recent one the 5015 top and swing bottom of 4936.Also regarding the margins please inquire with your broker.
Regards
K B Raut