-----NIFTYDOCTOR’S TRADE PRESCRIPTION-----
CALLS---
• File of today’s calls attached. (New calls avoided as there is likely gap down opening)
• In calls, book 50% at target and close 100% when trailing stop loss hits.
• Initiate position in new calls as per ORB strategy.
• All calls are given full follow up even if not initiated as per ORB strategy.
• It is advisable to monitor positions in open and other calls as per ORB strategy.
• To view ORB strategy visit at http://niftydoctor.blogspot.com/2009/04/opening-range-breakout.html
• In all calls average of last three days low is stop loss for longs and average of highs is stop loss for shorts.
TECHNICAL CUES-------
• Nifty made high and low of 5036 and 4983 on last trading day.
• Trading above 5025, up move will be seen up to 5040, 5060, 5080.
• Below 4983, correction will be seen up to 4950, 4930, 4910.
• Last swing top is at 5292.
• In the medium term,
--- Nifty is in corrective down move (from 21st Jan.) with targets of 5010 (achieved), 4950 (achieved), 4890.
--- The down move will ‘terminate’ above 5311.
• In the short term,
--- Nifty is now in downtrend (from 21st Jan.) with targets of 5090 (already achieved), 5020 (achieved).
----The down trend will ‘terminate’ above 5292.
DERIVATIVE CUES----
• Nifty January future discount decreased to 6 points so cost of carry increased. (Bullish)
• Nifty open interest increased by 7 lacs suggests long addition. (Total OI now at 3.34cr which is very dangerous and can lead to high volatility in coming days )
• Nifty calls added 17 lacs and puts added 4 lacs in open interest. (Bearish)
• Nifty open interest put-call ratio is at 1.02.
• 5000 puts had open interest of 52 lacs (-10%) and 5100 calls had open interest of 39 lacs (-4%), so 5000 and 5100 will be important levels to watch for.
• India VIX closed at 25.82, increased by 3.9% suggests instability. (Bearish)
• In Nifty stocks, advance-decline ratio is 13/37. (Bearish)
