Derivatives Update:05.09.2011
Nifty September Futures opened at 4994.15 with a gap of 39.85 points, went up to 5023, made a low of 4954, finally closing at 5010.50 down by 23.60 points.Bank Nifty managed to close in positive by 36.15 points.
Data from volume charts saw increase in Open Interest by 1437900 in September Series signifying some built up in positions. Yesterday also we saw increase in Open Interest by 1514100 shares. Built up in Open Interest signifies markets will see some good activity in coming days. Figures of traded quantity, no.of contracts traded & no. of trades indicate lesser participation from the players.
Nifty September Futures saw increase in Open Interest in two days by nearly 30 lacs shares without significant erosion in price indicate that Bulls might have mopped up positions. But this are merely observations and assumptions. Reverse can also be true. Movements of markets in coming days will make it more clearer.
In any case, as indicated in earlier posts too, we are in long term bear market and hence this might be considered as pull back or corrective of bear trend. Every leg of a trend is correcting nearly 61.8% Last bear leg started from 5760 and went down to 4718. So this correction may continue up to 5362 level. So advice is to sell at every rise with final stop at 5362. Intermediate stop can be above 5175 level, because 5175 level acted as good support earlier. Once we broke 5175 level it has turned in to stiff resistance or supply zone. Even Gap Down Level of 5337-5191 can act as a stiff supply zone. So we have multiple supply zones between 5175 and 5362 levels. Trade cautiously.
Among Stock Futures,SBI, RIL, Tata Steel ICICI Bank, Axis Bank were top traded shares on volume chart. Top Gainers list included BFUtility +18% FSL +8% NCC +7% IVRCL +7% Guj Fluro 7% Top losers were Wipro -4% Cairn -4% HCLtech -3% Ambujacem -3% INFY -2.5%
Happy Trading.
| SYMBOL | EXPIRY | OPEN | HIGH | LOW | CLOSE | CHG |
| NIFTY | 29/09/2011 | 5040 | 5072.1 | 4988.8 | 5010.5 | -23.6 |
| BANKNIFTY | 29/09/2011 | 9550.1 | 9656 | 9456.35 | 9596.75 | 36.15 |
| SYMBOL | EXPIRY | OPENINT | CHG IN OI | TR QTY | CONT | TRADES |
| NIFTY | 29/09/2011 | 20509950 | 1437900 | -978550 | -19571 | 2508 |
| NIFTY | 25/10/2011 | 540950 | 71250 | 108450 | 2169 | 1055 |
| NIFTY | 24/11/2011 | 61500 | 24100 | 17900 | 358 | 129 |
Nifty September Futures opened at 4994.15 with a gap of 39.85 points, went up to 5023, made a low of 4954, finally closing at 5010.50 down by 23.60 points.Bank Nifty managed to close in positive by 36.15 points.
Data from volume charts saw increase in Open Interest by 1437900 in September Series signifying some built up in positions. Yesterday also we saw increase in Open Interest by 1514100 shares. Built up in Open Interest signifies markets will see some good activity in coming days. Figures of traded quantity, no.of contracts traded & no. of trades indicate lesser participation from the players.
Nifty September Futures saw increase in Open Interest in two days by nearly 30 lacs shares without significant erosion in price indicate that Bulls might have mopped up positions. But this are merely observations and assumptions. Reverse can also be true. Movements of markets in coming days will make it more clearer.
In any case, as indicated in earlier posts too, we are in long term bear market and hence this might be considered as pull back or corrective of bear trend. Every leg of a trend is correcting nearly 61.8% Last bear leg started from 5760 and went down to 4718. So this correction may continue up to 5362 level. So advice is to sell at every rise with final stop at 5362. Intermediate stop can be above 5175 level, because 5175 level acted as good support earlier. Once we broke 5175 level it has turned in to stiff resistance or supply zone. Even Gap Down Level of 5337-5191 can act as a stiff supply zone. So we have multiple supply zones between 5175 and 5362 levels. Trade cautiously.
Among Stock Futures,SBI, RIL, Tata Steel ICICI Bank, Axis Bank were top traded shares on volume chart. Top Gainers list included BFUtility +18% FSL +8% NCC +7% IVRCL +7% Guj Fluro 7% Top losers were Wipro -4% Cairn -4% HCLtech -3% Ambujacem -3% INFY -2.5%
Happy Trading.
agreed, mkts may not be stable till Nov or Dec. Maitreya
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