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Boring ... Boring ... Be Patient !
Sensex Technical View :
Sensex
moves up and makes a high of 9725 close to the resistance level of 9750
and dips a bit to close arnd 9650. The breakout from the range is on
low volumes so will remain range bound with supports around 9450/9280
in near term which could be 2875/2845 zone which would be levels to
watch for.
While
writing this Dow Jones is down 300+ points so cues would be negative
but need to watch the 9280/9450 support zone for traders.
Stocks to watchout for :
Chamble,
Reliance , RPL and petronet made small moves and closed flat whereas
Lanco did give a small upmove. Continue to trade with lower volumes and
small stocps to conserve capital and patience for a major move which
may come in next couple of months.
As the range has reduced the stops should be kept at 3-5% and tgts of 10-12% as of now.
Market Observations and Thoughts :
Of
late have seen many amateur and novice traders punting in the options
market ( Nifty ) without any knowledge or calculation considering it
to be a low risk trading method which it actually is not mathematically
unless you have done the calculations right.
What
many traders tend to forget is the time decay in options as in a range
bound market novice traders tend to hold out of money options in hope
the prices may come back with Nifty following the direction but forget
with time the option premium would decrease. ( for example u buy a 3200
call at Nifty at 3000 spot suppose 10 sessions later Nifty again pulls
back to 3000 the call option may move down ! )
Will try to put some detailed links or posting on options in the weekend if possible.
Best Regards,
Nooresh
09819225396
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