Derivatives Update:12.09.2011
On price charts, Nifty September future opened weaker at 4996 made high of 4996, drifted as lower as 4912.05 and closed a 4954 down by 98.50 points. Bank nifty also followed at closed lower at 9385.60 down by 274.15.
On volume charts too, it was scaring. Traded quantity, No.of Contracts traded as well as No.of trades all were higher than previous day. This is bad sign for bulls as improvement in volume on a falling day indicates participation on short side has increased. Even Open Interest & change in Open Interest suggests that gloom is going to continue as it too has increased by 936200 shares indicating fresh shorts have been created in the market.
On technical Charts as indicated in earlier posts, Good amount of supply comes at the resistance zone area of 5175 making it difficult for Nifty to cross its resistance zone. Weakness may continue further and Nifty may try to touch recent bottom of 4718. Whether consolidation happens at this level or not needs to be watched very carefully. If not than God Forbid, difficult days lie ahead for Bulls as Nifty may drift down as low as 4200-4400 levels.
We are trading at difficult levels and volatility has increased in the markets. Advise remains the same trade short with respective stops as no immediate breakout on upper side is in vicinity.
Happy trading.
| SYMBOL | EXPIRY | OPEN | HIGH | LOW | CLOSE | CHG |
| NIFTY | 29/09/2011 | 4996 | 4996 | 4912.05 | 4954 | -98.5 |
| BANKNIFTY | 29/09/2011 | 9495 | 9540 | 9336 | 9385.6 | -274.15 |
On price charts, Nifty September future opened weaker at 4996 made high of 4996, drifted as lower as 4912.05 and closed a 4954 down by 98.50 points. Bank nifty also followed at closed lower at 9385.60 down by 274.15.
| SYMBOL | EXPIRY | OPENINT | CHG IN OI | TR QTY | CONT | TRADES |
| NIFTY | 29/09/2011 | 26735700 | 936200 | 1879200 | 37584 | 16609 |
| NIFTY | 25/10/2011 | 1695700 | 185500 | 231850 | 4637 | 3262 |
| NIFTY | 24/11/2011 | 261900 | 14200 | 3350 | 67 | 65 |
On volume charts too, it was scaring. Traded quantity, No.of Contracts traded as well as No.of trades all were higher than previous day. This is bad sign for bulls as improvement in volume on a falling day indicates participation on short side has increased. Even Open Interest & change in Open Interest suggests that gloom is going to continue as it too has increased by 936200 shares indicating fresh shorts have been created in the market.
On technical Charts as indicated in earlier posts, Good amount of supply comes at the resistance zone area of 5175 making it difficult for Nifty to cross its resistance zone. Weakness may continue further and Nifty may try to touch recent bottom of 4718. Whether consolidation happens at this level or not needs to be watched very carefully. If not than God Forbid, difficult days lie ahead for Bulls as Nifty may drift down as low as 4200-4400 levels.
We are trading at difficult levels and volatility has increased in the markets. Advise remains the same trade short with respective stops as no immediate breakout on upper side is in vicinity.
Happy trading.
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