-----NIFTYDOCTOR’S TRADE PRESCRIPTION-----
CALLS---
• File of today’s calls attached.
• 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.
• Intraday calls section added from today.
TECHNICAL CUES-------
• Nifty made high and low of 5008 and 4833 on last trading day.
• Trading above 4905, up move will be seen up to 4930, 4950, 4970.
• Below 4833, correction will be seen up to 4810, 4790, 4770.
• 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 (achieved).
--- 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 February future premium converted in to discount of 6 points so cost of carry decreased. (Bearish)
• Nifty open interest increased by 61 lacs !!!!!!!!!!! suggests short addition. (Total OI now at 3.95cr which is very dangerous and can lead to high volatility in coming days )• Nifty calls added 97 lacs and puts added 14 lacs in open interest. (Bearish)
• Nifty open interest put-call ratio is at 0.9.
• 4800 puts had open interest of 43 lacs (+18%) and 4900 calls had open interest of 44 lacs (+430%), so 4800 and 4900 will be important levels to watch for.
• India VIX closed at 28.92, increased by 12% suggests instability. (Bearish)
• In Nifty stocks, advance-decline ratio is 0/50. (Bearish)
