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Monday, 29 August 2011

Derivatives Daily Update:29.08.2011

Derivatives Update:29.08.2011


SYMBOL     EXPIRY OPEN  HIGH LOW CLOSE CHG
NIFTY      29/09/2011 4805 4948 4802.3 4933.15   184.45
BANKNIFTY  29/09/2011 9077 9374.85 9060 9345   371.5


Nifty September Futures  opened with a bang today. It opened with a gap of 57 points went just tag below opening price, made a high of 4948, finally closing at 4933.15 up whooping 184.45 points. Of course it made a higher top higher bottom. Bank Nifty too went up with vengeance making bears to run for the cover.


SYMBOL     EXPIRY  OPENINT CHG IN OI TR QTY CONT TRADES
NIFTY      29/09/2011 23205500 -1023400 -4107950 -82159 -24527
NIFTY      25/10/2011 842300 104400 41850 837 -401
NIFTY      24/11/2011 68450 40200 26500 530 208

Data on volume chart doesn't support fully to the today's movement. Data indicates short covering in the market. On a rising day Open interest has come down by 1023400 shares. Traded quantity, contracts and no. of trades were all lower than yesterday signalling that no fresh new bull positions have built up in the market. As indicated in earlier posts many technical indicators were in oversold zone so a pull back was always expected which we have witnessed today.

Analysis of data leads us to believe that today's upward move has to continue for few more sessions without making any further low and breaking the resistance level of 4970 for near term and 5191- 5371 zone for slightly medium term. If it fails to breach this resistance zone downward bias may continue. Certain technical indicators like RSI, Stochastics, MACD are in oversold zone and have managed to cross their respective averages, which indicates change in trend. But after a few bullish sessions if this indicators again start moving in to negative territory, we can witness further fall, which might take Nifty below 4718 levels.

So idea is to trade with caution and with downward bias.

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