Morning Bells (20 Jan 14)

Morning Bells (20 Jan 14)

Good Morning Friends.

Each moment in life is like a picture which you have never seen before & which you will never see again. So enjoy & live it king size, make each moment of your life beautiful.

Fact file - Markets will do what they want to do. Our task as traders is to follow the market, and understand that sometimes, the markets give us nothing!

Once again Nifty is giving confused signals, if see Nifty attempted 6330 and failed to give any breakout, mean failed to sustain (remember that’s I had told you it need to close for 2 successive days above the level to take fresh longs), same way its failed to give us breakdown i.e. bouncing from our level 6220. Which itself telling us clearly that participant are confused and that’s Nifty is repeatedly coming to trading range. So its in a small range of 6200-6350. And now I guess you all know what to do it any clear direction.

Now since its back from false breakout of 6330 and Bankex turning bearish which means market to remains choppy and a bit under pressure. A sudden spike is not ruled out as I am expecting since long and we saw few spikes on both side.

We are also entered to last 2 weeks of expiry so there would be many ups & downs and choppiness, this best time for options traders (yes if trades click right else white wash is there).

Now resistances are 6330 & 6357 and supports are 6220-6140-5980.

FINAL WORD -

Most of things are depend on OPENING. Here my trade strategy is simple, which is to follow trend, I wont go against trend, will also try to take some small risks. For option trader it’s a word of wisdom – either keep tight SL or a deep one mean don’t keep midway SL it would hurt you and you will lose only.

Also Nifty premium went down from +10 to Zero, open interest in both index CE & PE reduced. So OI activities giving view of range bound sessions and need to watch 6220-6200 closely.

RESULT CALENDER –

20 Jan – China GDP

22 Jan    – LT

23 Jan    – Cairn India, Global - US Jobless Claims, China PMI

24 Jan    – Sesa Sterlite

TRADE IDEAS–

Metal – JSW Steel & Sesa is expected to move up while Hindalco and TS will also see some strength. (Trend should be flat to positive)

OMCs – My first attempt went wrong in this, so lets hope if that is knocking the door now.

Reliance – Result are good and company have plant for further expansion, also Govt. also have good plan, so overall stock looks good. We had initiated 860CE around 10-12 but booked profit too early. And that’s again we initiated long straddle. We are also looking to bet on 880CE now, ofcourse if market supports else we would wait for dip in CE prices.

Bajaj Auto –

Looking good on chart as well as showing good strength, CMP 1933, it’s a good trade for active player, if it moves up from here i.e. 1936 onward we can expect 1965 & 2015. From below 1930 it may touch 1905 & 1860. So once you get good trading range one can always take risk and can make good money. Right now trend is on up side.

OPEN CALL -

Reliance – Long Straddle 920CE & 860PE @12 (combined premium) TG – Hold SL - NA

Be on board. Have a profitable day.