Why 8100 is a very important Number for the Nifty?

In more than a year now since this bull run began the Nifty has not violated its 20 day weekly moving average (WMA) which comes in at 8100. That all changed recently where we broke and closed below the 20 WMA for several days and are just below that level now. The breach of this level to the upside suggests some strength ahead. If this level acts as resistance there could be trouble ahead and a major change in trend could emerge with the 20 WMA acting as major resistance going forward. Chart courtesy StockCharts.com.

Update on Nifty Strangle, Time to Book Profits

I had highlighted the Nifty 8400-8800 strangle at 95 in an earlier post.
http://rajveersmarketviews.blogspot.in/2015/04/option-trading-strategy-indian-market.html
As of Now
Nifty - Current Spot - 8823

Nifty 8400 Put - 15
Nifty 8800 Call - 135
Total -150
Profit -55%
Time to book profits!

Option strategy to capture the next big move in the market

It appears that volatility will be the name of the game going forward. The Vix appears to be headed upwards in the short term. If volatility was to surge upwards implied volatility on options would do the same. On the daily chart the S and P 500 looks set to break out of a coiled spring like formation out of its recent trading rage between 2040 and 2120.  A strangle strategy would help in capturing this as earnings season begins.
Current S and P 500 spot - 2076


Looking at options prices on the CBOE expiring April 30:
2070 puts are available near $25
2080 calls are available near $24
Break even points - 2021, 2129
make money - below 2021 or above 2129
loose money - between 2021 and 2129.

It is note worthy that several asset classes are on the verge of breakouts from their recent trading ranges and such a strategy could be extended to them. In the commodity space gold, copper and crude stand out:



In the forex space the Japanese Yen crosses particularly EUR/JPY, AUD/JPY and GBP/JPY stand out: