Nifty weekly update 26-30th December 2011

Nifty had a range bound session on Friday and the turnover data too was not very encouraging. It is a Christmas holiday week for the FII's and thus we can't expect an action packed week for Nifty. In the coming week too turnover would be low and Nifty could most probably see a range bound session. If we observe the price action it is evident that Nifty held our major turning point of 4640 and that could be a decent stop loss cushion for all long positions. On the upside Nifty held one of our major resistance point of 4770 on Friday. Another resistance point where lot of short positions got initiated would be around 4840 levels and these are levels that could act as upside cap.If you are an experienced trader start selling options by keeping a delta neutral position as a possibility of range bound market would be more.Thus by making your position a delta neutral one a trader could get the extra premium in his favor.Volatility data was in favor of bears as short positions are getting initiated on tops with a decrease in cost of carry.As per time cycle we have a major date coming around 5th of January for a major turn around. As of now we can keep 4640-4840 as the range for the week.