Nifty View for 21.12.2011

Nifty is doing what it is supposed to do i.e. going down.In such scenario traders should watch it patiently to bottom out after such a steep fall.The bottoming out process takes time and will require patience and discipline on part of traders.This is not the time for a taking a view and hold the positions yet.One should look for intraday positions only.At such times options premiums can be high with such volatility which could make a huge dent on your pockets with sudden movements forcing to take and reverse positions again and again.The risk management level given was 4750 here and those who could take evasive action would have been spared from such bouncers in markets.A simple buying of put of strike 4700 or 4800 would have given good returns to traders instead fighting it out for everyday.This market will be a lesson for compulsory traders with many making losses with being forced to take positions against their views.Now what next, for positional players no longs till close above 4630 which was the intraday resistance yesterday.Markets will provide opportunity to players of each class but the same can be availed with discipline which will avoid capital erosion.Trading without proper knowledge will be dangerous to your financial health.No bottom making pattern is observed yet so avoid bottom fishing.One can look to buy a call option of 4500 strike around 50-60 range if spot breaks 4400 levels with short covering/profit booking coming around 4300-4400 levels.Maximum risk is 3000 and hold till expiry which will require patience.This call is for risky traders and not for safe players you may loose the capital employed here.The chart given above show channel bottom around 4380.The level of 4300 if seen will be good entry point for positional players. Intraday players can trade as per levels given below

Spot Nifty levels for intra-day trade on 21.12.2011
No trade between 4527 and 4561(to avoid whipsaws)
Buy above 4561 with SL of 4541  for targets of 4578-4595(breakout  level on the upside,add positions)-4612-4629-4646-4663-4680-4697.
Sell below 4527 with SL of 4547 for targets of 4511-4494(breakdown level on the downside, add positions)-4477 -4460 -4444 -4427- 4410- 4394.
Happy Trading !