NIFTY TREND

Nifty took a U turn from 10710 and again touched 10249 and finally closed at 10303, marginally above 10300.  A bounce back is expected around 10111.

Bank Nifty also looks  weak. It wont be a surprise if it retest the recent  low of 24250.

Clue  for options trade.  One can hold on to PEs till the time nifty and BN  reaches  the above level. 

If today's gap down does  not give a  chance to  enter  into PE, then  one must  wait for reversal and be  on the Call side.  

ALERT:   Nowadays the gap  up and gap down in nifty is too risky that any one who writes  either CE or PE are in too much  risk  that the overnight position gets squared  off  in  no  time and they are left with no money to trade.  Always hedge your option writing.  

Suppose  you write 10500 CE of November then you buy equal quantity of 10700 CE. This will  protect  you from risk.  Trade with 25% of your capital. Do not invest 100%.

Happy Trading!