23 Sep: Nifty View

On Thursday, Nifty reacted and fell over 200+ points in a reaction to negative global cues. It was a Trend Day, and all those who could get in early on the break of supports at 5050 and 5020 would have made huge profits. In our Nifty View of 21 September (click here to Read), we had written to Buy an Option of straddle of 5100 CE and 5100 PE and hold till Friday. That option straddle was given in anticipation of a big move after the Fed meeting. The combined price was trading around 150 on 21 September. The combined price on Thursday was 225. A profit of 75 points (50%), and there is more to come on Friday. For now, the trend has definitely turned down, and all rallies should be used to create short positions.

For Friday, immediate resistance for Nifty Spot comes at 4940-4945 levels. Above this, next resistance levels come at 4990-5020 and 5050 levels. Use the rallies towards these levels to create short positions. In a falling market market, look for resistances to Sell and not Supports to Buy. Downside levels to watch are 4905-4860 and 4825.

23 Sep: Nifty Spot resistance at 4945-4990-5020-5050. Support at 4905-4860-4825-4780 - www.niftypower.com

Visit here for Nifty Option Tips