I was thinking about a simple trend line strategy to short
5100 Nifty PE 28 Jan 2010 series
CMP : Rs 93.
1)Just assume that nifty is likely gonna respect this trend line as shown in Nifty daily chart
and likely to stay above the trend line till 28 Jan 2010 seires expiry.
2)And if we assume so, then we could interpret approximately that as per Nifty daily charts then somewhere around 5050-5080 is going to the trendline support for time being.
3)And the trend line increases with respect to time.
4)If nifty is not in a mood to dip below the trend line then it is definitely not
gonna close below 5050-5080(Just an assumption).
5)So if we gonna write 5100 Nifty PE 28 Jan 2010 Series then definitely
our profit is gonna be Rs 93/Lot because if nifty closes above trend line
during expiry of Jan 2010 series then definitely it should be above 5100
and also the supports are also likely to increase with respect to trendline.
and ultimately 5100 PE value has to be zero during Jan 2010 expiry
6)Stop Loss is the trailing support of the trend line and for time being
it is near 5050.
I’d like to hear comments and discussions from you people. on such
simple strategies and risk involed in that .