Derivatives Update:29.08.2011
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.
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.
| 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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