25-9-2014 - NIFTY

                NIFTY has closed at 7902.25. As mentioned yesterday, we have exited the longs in NIFTY. We did not initiate any shorts either as NIFTY did not breach our level of 7880 or closed below it. So we are on the sideline. 7880 is a real strong support. The break and close below 7880 will force us to initiate a short position in NIFTY, starting with at the money puts, to keep our risk low. One can initiate

the same strategy if comfortable. For these puts, 8000 will be a strict Stop Loss. In case NIFTY breaks out on the upper side and trades sustainably on the upper side above 8050, we will initiate the long position again in NIFTY. For this long position in NIFTY, a closing basis strict Stop Loss will be maintained at 7950. One can initiate this strategy if comfortable. Till the time it is trading between 7880 and 8050, NIFTY must be considered in NO TRADING ZONE. So please keep these levels handy and trade accordingly and safely.