Indian Markets Following Global Ques

In recent times Indian Markets are clsoing following Global counterparts (especially Nikkei: Asian Counterparts). Though all the research reports says that the martket for the feb is weak but (Nifty at current levels 2843.10) here I see we can see markets testing 2920 odd levels once this month. I strongly feel this because there is no real news flowing in Indian Economy so people are neither optimistic nor pessimistic because of domestic factors.

My View is market to remain rangebound in and 2700 - 2920. Don't ask for charts :-)

My Suggestion trade with swings because market is giving easy oppurtiunities to earn. So we can even earn using naked Call and Put.
~Chetan.

Sell 3100 Nifty call option

I think that selling 3100 call has very less risk as:

1) I dont expect the feb series for nifty to settle above 3100.

2) The chances of nifty to gain more than 10% from current level of 2780 in the current series appear to be low.

If we sell 3100 call arnd rs 15 (cmp: 13) we can get abt 750 per lot, the amount blocked as margin wud be arnd 25k. Total cash as on date is arnd 78k, so still we wud have 53k left for trading. 

Also there is no point thinking to sell out of money options near expiry as we have seen that at that time we can hardly get any premium.

The return of rs 750 on 25k blocked appears as meagre but the probablity of getting this trade right is quite high which implies tht money earned wud be at min risk. Also uptil now we have never used entire fund amt for trade, there's no point keeping the money in bank where we just fetch a monthly interest on the unused money for trades.

Interest earned on money in savings bank account is abt 5% p.a.

So on 25k monthly interest earned wud be arnd  rs 104.........by selling this call, effectively with min risk we r getting rs 750 instead of rs 104.