Derivatives Update:08.09.2011
Both the Index Futures Nifty & Bank Nifty continued its journey upwards. Nifty Futures is up by 37.8 points & Bank nifty is up by 73.75 points. Today was the seventh day in a row when Bank Nifty has consecutively closed higher than a previous day since it made a low of 8917.95 on 26.08.2011. Nifty Futures too has continued its winning streak & closed higher for the consecutive 7 trading session bearing 1 trading session.Both Nifty & Bank Nifty are trading above the 38.2% Fibonacci retracement level of 5116 & 9887 respectively and fast approaching their 50% retracement level of 5239 & 10185.
Data from volume charts today too were not impressive. Though Traded Quantity, No.of Contracts traded & No.of trades were higher than yesterday, Open Interest in Nifty September Futures have come down by 375550. Rise in price of Nifty accompanied by fall in Open Interest suggests no fresh buying coming in the market, instead there is some bull unwinding or short covering in the market.
Interesting observation is that Nifty September Futures today almost touched the 5175 level which is major resistance and was not able to breach the same. As said in earlier posts, Nifty Futures while falling from 6349 level took the support at 5175 level and corrected up to 6000 level. It started its downward journey back and again fell up to 5182 level and corrected up to 5760 level. Continuing its downward journey from there it breached this 5175 level & made a low of 4718 level, making 5175 as stiff resistance level. Today it attempted to breach the same but supply came at that level & Nifty closed at 5155 level.
We are definitely trading at crucial level. As you are aware while falling Nifty made a Gap down of 5337-5191 level which it was not able to fill up. Hence this is again a stiff resistance level. Both 50% retracement level of 5240 & 61.8 % retracement level of 5362 are also important resistance level. All in all we can construe that, Nifty is fast approaching its crucial resistance zone and so it becomes extremely pertinent for us to watch this level very carefully. Once we are able to take out this levels & comfortably trade above this levels for few days, we can assume that new medium term bull trend has started and can venture a bull strategy.
Till that time respect technical levels, respect markets, be vigilant. Either wait for break outs or trade short with 5175/5240/5362 as strict stop loss.
Among Stock futures Reliance Ind, State Bank, ICICI, Larsen, Axis were the highest traded Stocks on volume parameter. Top gainers in FO segment were Delta+9% K.S.Oil +8% VIP Ind +7% GSPL +6% Vijaya Bank +5 %. Top losers were Jubilant Foods Bata India Sail Adani Power HPCL all by -3%
Tomorrow is the last day of trading for this week. Trade cautiously.
Happy Trading.
| SYMBOL | EXPIRY | OPEN | HIGH | LOW | CLOSE | CHG |
| NIFTY | 29/09/2011 | 5126 | 5174 | 5088.35 | 5155 | 37.8 |
| BANKNIFTY | 29/09/2011 | 9848 | 9928 | 9721.65 | 9908.1 | 73.75 |
Both the Index Futures Nifty & Bank Nifty continued its journey upwards. Nifty Futures is up by 37.8 points & Bank nifty is up by 73.75 points. Today was the seventh day in a row when Bank Nifty has consecutively closed higher than a previous day since it made a low of 8917.95 on 26.08.2011. Nifty Futures too has continued its winning streak & closed higher for the consecutive 7 trading session bearing 1 trading session.Both Nifty & Bank Nifty are trading above the 38.2% Fibonacci retracement level of 5116 & 9887 respectively and fast approaching their 50% retracement level of 5239 & 10185.
| SYMBOL | EXPIRY | OPENINT | CHG IN OI | TR QTY | CONT | TRADES |
| NIFTY | 29/09/2011 | 26194550 | -375550 | 618950 | 12379 | 1058 |
| NIFTY | 25/10/2011 | 1422600 | 94050 | -100900 | -2018 | -491 |
| NIFTY | 24/11/2011 | 222750 | 8700 | -4750 | -95 | -44 |
Data from volume charts today too were not impressive. Though Traded Quantity, No.of Contracts traded & No.of trades were higher than yesterday, Open Interest in Nifty September Futures have come down by 375550. Rise in price of Nifty accompanied by fall in Open Interest suggests no fresh buying coming in the market, instead there is some bull unwinding or short covering in the market.
Interesting observation is that Nifty September Futures today almost touched the 5175 level which is major resistance and was not able to breach the same. As said in earlier posts, Nifty Futures while falling from 6349 level took the support at 5175 level and corrected up to 6000 level. It started its downward journey back and again fell up to 5182 level and corrected up to 5760 level. Continuing its downward journey from there it breached this 5175 level & made a low of 4718 level, making 5175 as stiff resistance level. Today it attempted to breach the same but supply came at that level & Nifty closed at 5155 level.
We are definitely trading at crucial level. As you are aware while falling Nifty made a Gap down of 5337-5191 level which it was not able to fill up. Hence this is again a stiff resistance level. Both 50% retracement level of 5240 & 61.8 % retracement level of 5362 are also important resistance level. All in all we can construe that, Nifty is fast approaching its crucial resistance zone and so it becomes extremely pertinent for us to watch this level very carefully. Once we are able to take out this levels & comfortably trade above this levels for few days, we can assume that new medium term bull trend has started and can venture a bull strategy.
Till that time respect technical levels, respect markets, be vigilant. Either wait for break outs or trade short with 5175/5240/5362 as strict stop loss.
Among Stock futures Reliance Ind, State Bank, ICICI, Larsen, Axis were the highest traded Stocks on volume parameter. Top gainers in FO segment were Delta+9% K.S.Oil +8% VIP Ind +7% GSPL +6% Vijaya Bank +5 %. Top losers were Jubilant Foods Bata India Sail Adani Power HPCL all by -3%
Tomorrow is the last day of trading for this week. Trade cautiously.
Happy Trading.
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