"TRADING IDEA FOR MONDAY (19.07.2010)"

Nifty gained about 100 points after closing above 5350 and touched a high of 5453 & finally closed at 5394. Nifty has now a immediate support around 5344 and if Nifty trades below this level we may test level of 5300 & then 5210. The short term trend in Nifty changes only when Nifty closes below 5210 which should act as a strong support for the markets. On the upside if Nifty manages to trade with a positive bias we may see level of 5550 on Nifty.
The open interest for the index at the end of this week has increased by 5.14% as compared to the previous week.
The Put-Call open interest ratio of Nifty has increased to 1.49 from 1.40. At the end of week, the maximum stocks had a positive trend of change in put call open interest ratio.
The Implied Volatility (IV) for Nifty futures this week has increased to 17.10% from 15.34%. The IV of the stock futures has changed this week ranging from -4.91% to 16.21%.
FOR TODAY: If NIFTY future open around 5365-5370 and stops going downside below 5350, will go long with a strict stoploss of 5344.
My view is to take every dip as a buying opportunity.

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