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[rajatheroyal]

Nifty goes to 2500 level which is the closing low of october and gets support there.It is also the target of the double top formation.
http://img237.imageshack.us/img237/7619/26907540rl9.png

 

[younas shaik]

Hellow I am Younas Shaikh and I am interested in Option Trading. I am new to this field. I need guidance. I have read some posts regarding trading techniques and I found them very usefull for me as a beginer. Thanks.
Regards.

 

[rajatheroyal]

Hellow I am Younas Shaikh and I am interested in Option Trading. I am new to this field. I need guidance. I have read some posts regarding trading techniques and I found them very usefull for me as a beginer. Thanks.
Regards.

Hi younas, you should first learn the basics of options before entering into options market.Options are generally used to hedge future and stock positions of ones portfolio but you want to trade in option, no problem read basic books on options.If you search 4 shared.com you would find a number of books on options.Study the techniques used in options and start trading.
My best wishes to u.

 

[rajatheroyal]

Nifty gets support at 2500 and forms a lower bottom.Then goes 2850 which is the previous bottom from which nifty broke down to 2500.Nifty faces resistance there and comes back to test 2500 level.
http://img213.imageshack.us/img213/9430/10498720kk5.png

 

[rajatheroyal]

Nifty made a lower top at 2850 so we expect the downtrend to coninue.But this time nifty did not even test 2500 it got support a slightly higher level of 2550.Now we should be little cautious because nifty made a higher bottom at 2550.Nifty again goes break 2850 and this time it broke 2850.This confirms the start of a new intermeidate up trend.
http://img407.imageshack.us/img407/3503/45324274ee8.png

 

[rajatheroyal]

Nifty faces stong resistance at 3150 level and slips to test the support zone of 2800 and bounces again from that level to face resistance at the same 3150 level.This forms a double top formation which is confirmed by the break of 2800 level.If 2800 does not hold then nifty may test 2500 which is the target of the double top formation.
http://img379.imageshack.us/img379/96/45226401ac4.png

 

[rajatheroyal]

We can see a pennant formed in the weekly chart of nifty.Pennant is a smaller version of symetrical triangle and is a continuation pattern.If the pennant breaks down then it suggests that nifty may go to 1800.
http://img440.imageshack.us/img440/9408/penwy4.png

 

[rajatheroyal]

See how fibonacci levels help the trader to book profits.Any one who is short should have booked at least partial profits at important fibonacci levels.Also one could have gone long with a strict stop below that 50% level.
http://img239.imageshack.us/img239/8120/fibls6.png

 

[rajatheroyal]

Nifty is around 38.2 % retracement of the current down move from the top of 3150.I think anybody who is long long should book profit at this level.He can re enter his long once this level is broken.Any body who wants go short can do with proper stop with confirmation from his other tools.
http://img115.imageshack.us/img115/610/38505401xp7.png

 

[rajatheroyal]

see how nifty is taking resistance around fibonacci level.
http://img510.imageshack.us/img510/741/fibykx8.png