Derivatives Update:18.08.2011
Nifty August Futures literally crashed today. Nifty August Futures opened at 5055.65 hardly made a high of 5075.65 crashed down to 4926.40 & finally closed at 4938.05. Today Nifty August was down by 128.70
Nifty again made lower top lower bottom. Today's high of 5075.65 was far below 5126 yesterday's high & low 4926.4 was far below 5014 yesterday's low. Trend is strongly down. Today Nifty August futures breached the low of 4951 which it made on 09.08.2011 & made a new low of 4926.40.
On volume charts, traded qty. in August future was low by 672850, No. of contracts were low by 13457 & total trades were down by 11504. Though they were high by 684250, 13685 & 6844 in September Futures respectively.
Open Interest increased by 722150 in August series & 297650 in September series.
My prognosis of market remains bearish. Nifty Futures are constantly under pressure. My firm view(as indicated in earlier post) was Nifty will try to touch 4951 as it was not breaching the gap of 5191-5337 which it made on 05.08.2011. I further said that once this level of 4951 is taken out Nifty futures will try to touch 4835 level which is 200 WMA. Today FII activity doesn't indicate any reversal in the trend as today FII sold Index Futures worth 327 cr & Index option worth 275 cr. Indicators of the overseas markets are also not so conducive. Though some traditional indicators are in oversold zone pull backs are always possible. Advice is to sell in every rise still we see some meaningful bottom in place.
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