23rd December 2011

Daily Chart

Good follow up bullish candle breaking out of the short term down trendline.Resisted at 23.6% retracement level of fall from 5400-4432. Next resistance zone at 4800.20 ema at 4797, fibonacci cluster at 4818 as shown on half hourly charts below.If manages to cross the resistance then could target 5100.


Half Hourly Chart

Half Hourly Chart

A rising wedge formed.This is a bearish pattern. Nifty resisted today at it's resistance line.Resistance for the day is at 4743-4777.Trade long with a stop at  4646-4710 for the day.

Update:Jan 5100 CE closed unchanged at 31 rupees

22nd December 2011

Daily Chart

Seeing the neckline broken so decisively made me bearish .I failed to see the ‘outside day’ formed which is a reversal pattern.The oversold status of the markets gave rise to a pullback.

Half Hourly Chart

The half hourly charts have turned mildly bullish with a breakout from the downtrending channel. The 5 ema has bullishly crossed the 20 and 50ema. If the momentum continues the bulls may drag the Nifty to 4920 levels. It is still a sell on rise market and the 4818 level should be strong resistance.

Strategy 

Write 1 lot 5100 call jan series at 31 rupees

Management :  above 4920 buy a 4900 CE at CMP Jan series