WEEKLY OUTLOOK 27TH DEC TO 31ST DEC (LAST WEEK OF YEAR)

LAST WEEK OF THE SETTLEMENT AND YEAR TIME TO BE A BIT CAUTIOUS


OPTIONS DATA SUGGEST THAT NIFTY SETTLEMENT FOR THE DEC SERIES SHALL DEFINITELY TAKE PLACE ABOVE 6000 AND THE CHANCES ARE BRIGHT ( ALMOST 70%-80%) THAT SETTLEMENT SHALL TAKE PLACE ABOVE OR AROUND 6100.


THE BEST STRATEGY FOR THIS SERIES WILL BE SELLING DECEMBER 6000 PUT AROUND 25-30 WHICH WILL BECOME ZERO ON THE EXPIRY DATE SIMULTANEOUSLY ONE CAN BUY DECEMBER 6000 CALL AROUND 50-55 TO SELL FOR 100++


ASTROLOGICALLY THERE IS SOLAR ECLIPSE ON 4TH JANUARY 2011 AND THE EFFECT OF WHICH WILL BE FELT IN BOTH COMMODITY & STOCK MARKETS. IT IS QUITE POSSIBLE THAT MARKETS AFTER TOUCHING HIGH BEFORE THE SETTLEMENT MAY REVERSE DOWN ON ANY BREAKING OR IMPORTANT NEWS FLOW, WHICH IS UNEXPECTED. IT WILL CREATE BOTH PANIC AND AGGRESSIVE MOVEMENTS. HENCE OPTIONS SHALL BE THE BEST PLAY. ON SHOULD BE CAUTIOUS TO BUYING POSITIONS, IF NIFTY CROSSES 6120 BEFORE SETTLEMENT. THERE COULD BE DOWNWARD JERK OR DOWN SWING (NIFTY MAY TEST 5900-5950) ON SETTLEMENT DAY EVENING, 30TH DEC 2010 & 31ST DEC 2010.


HENCE THOSE HOLDING LONG POSITIONS IN INDEX & STOCK FUTURES SHALL ABSTAIN THEMSELVES FROM ROLLOVER TO THE NEXT SERIES IN THIS WEEK. IT SEEMS THAT ONE MY GET LOWER PRICES ON STOCKS AFTER THE END OF THE DECEMBER SERIES. HOWEVER BUYING IN THE OPTIONS FOR THE JANUARY SERIES COULD BE STARTED.


TECHNICALLY NIFTY IF TRADES ABOVE 6120-40 FOR AT LEAST 2/3 TRADING SESSIONS WILL CONFIRM THE MORE UPSWING TO 6180-6220-6300++ HOWEVER WE MUST TAKE CARE WHILE SELECTING STOCKS AS THERE WILL BE NARROW RALLY, IN WHICH IT MIGHT BE POSSIBLE THAT STOCK WHICH YOU SELECT MAY NOT PARTICIPATE. HENCE BUYING NIFTY OPTIONS AND SELECTED STOCKS WILL BE BENEFICIAL THAN MAKING WIDE INVESTMENTS.


CONCLUDING TO THE ACTION: WE SHALL CONCENTRATE ON NIFTY OPTIONS AND TRY TO AVOID THE ROLLOVER TO THE NEXT SERIES IN FUTURES OR CASH BUYING IN THIS WEEK. ANY BUYING POSITION IN STOCKS WILL BE UPDATED AS & WHEN IT IS CONSIDERED SUITABLE.


SO BE IN TOUCH !!!!!!!!!!!


NOTE: THIS SITE IS UPDATED DAILY AT NIGHT AROUND  11PM FOR THE NEXT DAY OR IN THE MORNING ANY TIME AROUND 8.30AM TO 9.30AM. ALSO SOME TIMES IT IS UPDATED IN NOON. SO DO CHECK THIS IN SECOND HALF OF THE DAY ALSO.

Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.

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This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.