As expected and mentioned yesterday the markets were weak today with Bank Nifty outperforming the Nifty. I have sold Nifty 11,200 CE and 10,500 PE today with a combined premium of Rs. 118. Presently, I am not using a stop loss for this trade and would be cautious if it moves beyond 150 (32 points) and am looking for a profit of Rs. 50 atleast. 

The first day of the year reminds me of the movie Shawshank Redemption. The whole day it was dull and moved in a range and just when people lost interest or were looking at closing shops it gave a significant move in the opposite direction. It would be fair to say that the markets lulled most traders into complacency today for the better part of the day.

Nifty is currently at a cusp. There is a lot of euphoria currently that Nifty is set to cross 11,200 however, we feel that the move may not be so straight forward.

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