In my previous blog i mentioned that the Nifty could peak@5950 . But the rise in last 2 days has already taken Nifty to 5850 in a very short period of time. This is a small bubble forming . How ever i do not expect the market to crash now .But the point is it will crash in next 6-8 months when the retail investors flock to the market.
In the short term i do not think the Nifty can scale much higher. The simple reason being the heavy weights having run too much in too short time will fall slowly under its own weight.
So the best strategy for next many months is sell higher calls and pocket the huge premium starting from Oct 6000 calls which will give you a premium of 75 Rs or a Nov 6100 Call which will give you a premium of 85Rs. if the Nifty still reaches that level in euphorio simply carry forward that position to more higer calls you are more likely to land in profits :-)
You can read abt option selling here
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in the month of march 5600 was a big resistance and not bad strategy to buy 5600 put, the same way in this month 5900 is a big hurdle not bad to buy 5900 put, market above 5900 can go upto 6150 non stop,,,in that regard it will be RELIANCE, IT AND STEEL WILL BE THE HERO,,,bear is safe untill 5900
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