Nifty Intraday move on 19th October 2007

Nifty on Friday did more chaos by falling down adding to the woes of the people stuck in naked future longs and calls. Puts were the instruments heavily traded. Traders could be imagined buying and selling them like potatoes and onions in the vegetable market. But the only problem was that the volatility was so huge, only big players with deep pockets were able to do the same or the small ones were playing with as little as possible.

A very good move was formed during the day for jobbing. This was even announced on the chat group a number of times. We are not sure who all or how many did materialize from this. It was something like this. Nifty today was behaving like DOW does. Nifty was moving in a wide channel which was more than a 100 points wide. The movements were going in perfect symmetry as nifty was falling perfectly in that channel and hitting the ends of the channel perfectly well. After 1 p.m. when nifty hit the lower line around 5107 a call was initiated as the 5100 was held and it started to bounce back. The logical 5100 was being held was the great relief for all and the call was initiated immediately. The rise was slow and steady and took nearly three quarters of an hour to reach the top of the channel at 5222 where a target was met. And for any one observing the Fibonacci values, if this trade was held on with a stop PROFIT, a peak later was generated at 5259. The total spread in this move was over 150 nifty points.

Keep watching channels. Not much technicals required. Keep drawing lines. Trends keep breaking and new ones keep forming. A major trend with a major break can simply be traded to give you all the benefit for the day enough to cover your whole week or month if traded properly and judicially. Do make sure over a larger time frame if you are going in the right direction. If the larger time frame directions says opposite, trade this move rather carefully. And if the larger time frame move is in the same direction as this current move, play the shots with more and more. All the best for the next situation.