nifty strategy

Nifty has reached a point where it is looking for direction.
Indicators are mixed, results are better than expected but already
discounted, Nifty facing resistance between 5350 & 5400 & having
support at 5285 & 5250. Decisive breakout on either side at extreme
levels can yield 100-125 points in coming sessions. Nifty today
ranged between 5330 and 5301 being just 29 points and is the most
boring day in the past 5 years. Dow Jones is down by 146 points as
of now. Expect a gap down open but not expected to go below 5250.

Preferred Strategy in trading Nifty

Dont act till nifty breaks 5250 with volumes. If Nifty stays below
5250 at the close then do the following

Sell 1 Lot May Futures @ 5250 - To get the maximum benefit of shorting
Sell 1 Lot May 5200 Put @ around 200 (currently quoting at 177) - To
minimise the cost of holding short and collect premium
Buy 1 Lot May 5400 Call @ around 45 (currently quoting at 66) - This
is to protect from unexpected upmove / short covering

Total Investment for the above strategy 65,000 for 1 lots. If the
may contract expire at around 5000 then your profit from futures is
200x50=10000 + No profit no loss from sale of put + loss on purchase
of call 2250 = Total Profit of 7750 (12% of the investment in a
month).

Do your own analysis also before executing this strategy.

Regards,