Morning Mantra for 3'rd Jan 2014

Yesterday Nifty closed at 6255. SGX nifty is trading 50 points down.  SGX Nifty future is trading at 6208. SGX nifty future showing -0.82%. In opening session as per our trading call, We bought 6400 call at 77 and booked profit in it at Rs 104. We also gave 6500 call to be bought at 41 and booked profit at 65. We again gave a buy position in 6400 call at 40 and its open till now. Suddenly We saw basket selling in market in just twenty minutes and nifty future 6330 to 6220 . FIIS are buyers yesterday. Market had a rumors about Mr. Manmohan singh and also rumors for AAP to gain vote for their government or US treasury yield .  Traders keep stop loss of Rs 20 in 6500 call which we again purchased yesterday. On last 22’nd December we written about bull trap for traders after expiry which we think actually happened in market yesterday. We were expecting this to happen from 6^th to 8^th Jan 2014. We clearly written in that post after expiry there will be panic selling in market and nifty will find selling pressure of 200 to 250 points.  Again as per our charts 6^th to 8^th again negative momentum in market. According to us we can see it bull trap only hence just cut your long in 6500 call at Rs20 or Rs 18. We gained yesterday also 51 points in opening session and after considering this loss of Rs 23 at Rs 18, We still getting 27 points all combined trades. So please cut your long positions call options. Although considering Nifty future high of 6408 to SGX nifty future to 6208 almost we fall 200 points  in nifty so minor bounce not ruled out in market. But again from Monday from 6’th to 8’th again negative days ahead so it will be only dead cat bounce only .

Note : - 6^th  to  8^th January are negative closing as per our charts. You can always trade as per charts sent you in advance and gain according to it. Let the market stable, till the time stay away. As in basket selling we don’t think any trader can earn profit in their trade.

Thanks & Regards

Nishant Jani

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