Derivatives Update:22.08.2011
Nifty August Futures opened at 4850, went down to 4816.10, made a high of 4921.75 & closed at 4910.45. up by 59.60 pts. Today Nifty stopped its downward movement. It made a low of 4816.10 which is above yesterday's low of 4801. It made a high of 4921.75 which is above yesterday's high of 4903.30. So for the first time after many days it has made a higher top higher bottom. It has almost filled the gap of 4870-4926.40.
As seen from the above chart, Traded Qty. is down by 6962800, No of Contracts are down by 139256 & No.of Trades are down by 41810 in August Futures. Open Interest is down by 1727950 in August Futures but up by 1678400 in Sept. Futures. On a rising day volumes are less which shows lack of momentum & it is bit worrisome.
Today's activity shows some short covering. As indicated in earlier post Nifty has taken support at 4835 which is 200 WMA. But to draw any bullish inference from this is bit early. Markets were in oversold zone as indicated by many traditional indicators and accordingly we have seen some bounce back. For Markets to have formed some meaningful bottom, Nifty has to breach the gap of 5337-5191 which it has made on 05,08.2011 and trade above that or alternatively it has to trade above 4835 for few days without further breaking the low of 4801. Till then, it is advisable to short Nifty with relevant stops.
| NIFTY | 25/08/2011 | 4850 | 4921.75 | 4816.1 | 4910.45 |
Nifty August Futures opened at 4850, went down to 4816.10, made a high of 4921.75 & closed at 4910.45. up by 59.60 pts. Today Nifty stopped its downward movement. It made a low of 4816.10 which is above yesterday's low of 4801. It made a high of 4921.75 which is above yesterday's high of 4903.30. So for the first time after many days it has made a higher top higher bottom. It has almost filled the gap of 4870-4926.40.
| OPEN INT. | TR QTY | CONTRACTS | TRADES | ||
| NIFTY | 25/08/2011 | -1727950 | -6962800 | -139256 | -41810 |
| NIFTY | 29/09/2011 | 1377250 | 1678400 | 33568 | 3175 |
| NIFTY | 25/10/2011 | 11750 | -144800 | -2896 | -975 |
As seen from the above chart, Traded Qty. is down by 6962800, No of Contracts are down by 139256 & No.of Trades are down by 41810 in August Futures. Open Interest is down by 1727950 in August Futures but up by 1678400 in Sept. Futures. On a rising day volumes are less which shows lack of momentum & it is bit worrisome.
Today's activity shows some short covering. As indicated in earlier post Nifty has taken support at 4835 which is 200 WMA. But to draw any bullish inference from this is bit early. Markets were in oversold zone as indicated by many traditional indicators and accordingly we have seen some bounce back. For Markets to have formed some meaningful bottom, Nifty has to breach the gap of 5337-5191 which it has made on 05,08.2011 and trade above that or alternatively it has to trade above 4835 for few days without further breaking the low of 4801. Till then, it is advisable to short Nifty with relevant stops.
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