Smart Up Day: 19.10.2011
On price front, today nifty october futures opened strong at 5070, didn't go below 5070, made a high of 5157.50 and closed at 5149.40 smartly up by 104.50 points. Bank nifty too opened high at 9655, went down top 9639.90 made a high of 9877 and finally closed at 9856.35 up by whooping 277.25 points. Strength was seen in nifty as it opened higher than yesterday's high and didn't go below it for a whole day.
On volume front, total turnover during the day was 1.38 lac Cr and no. of contracts were 54.34 lac both higher than yesterday. Put call ratio was at 1.13 and volatility as measured by India VIX was 24.05 down by 7%. Some of the higher volume may be attributed to shifting in open positions from current series to new ones. Traded quantity and no. of contracts across all the series were higher than yesterday. No.of trades were lower than yesterday. Open Interest on net basis across all three open series was higher by 1272800 shares indicating some mopping up of positions by Bulls. Increase in open interest coupled with rising volumes is considered to be positive.
On stock futures front, heavily traded counters on volume parameter were SBIN, ICICIBANK, TATASTEEL, CROMPTONGREAVES and LT. Top gainers list included MOSERBAER 12%, ABB 7%, BOMDYEING 6%, GMDC 5% and NEYYVELLI 5%. Top losers were CROMPTONGREAVES -13%, SESAGOA -3% PATNI -2% ONMOBILE -2% and EXIDE -2%.
On stock options front, active counters were LT 1400 CE, RELIANCE 840 CE, SBIN 1900 CE, SBIN 1950 CE, SBIN 2000 CE.
On nifty options front, positive change in open interest was seen in 5200 CE (485400) 5300 CE (635100) 5400 CE (225350) 4800 PE (306250) 4900 PE (848700) 5000 PE (521500) 5100 PE (2488050) 5200 PE (606350). Negative change in open interest was seen in 4900 CE (-156300) 5000 CE (-1007750) 5100 CE (-448900) 4600 PE(-287150) 4700 P3 (-298550). Out of the Monet Put Option Open Interest was 5.39 Cr shares and Call Option was 2.26 Cr shares. Open Interest of In the Money Put Option was 34 lac shares and Call option was 98 lac shares.
On technical charts, today was an absolute up day but has remained within the larger band. On down side nifty is taking support at its short term to medium term moving averages and on upper side it is not able to surpass 5175 level. Expiry is approaching near and shifting of positions are taking place. Volatility has come down to 24 levels much lower than the start of the series which was ruling around 33 levels. Some stability is returning to the markets. Some short of wedge has formed between 5225 and 4725 levels. Once we break this wedge formation some meaning movement in price will be witnessed.
In conclusion, today's price movement and this week's price movement compel me to change my bearish stance. On weekly charts if we observe this is 3rd week in progress which has made higher top higher bottom from the low of 4725. Though I am still bearish and not in a mood to change my bearish view. I am waiting for the break out above 5240 and 5360. I feel that this are the levels where we will see good amount of supply. If markets fail to digest this supply we might be headed lower and this entire rally from 4700 level to current level will be considered pull back of larger bear trend. We are nearing inflection point and hence it becomes imperative that we trade cautiously. Don't be shy of squaring off your losing positions at stop loss if you want to trade longer.
Happy Trading
Atul Doshi.
On price front, today nifty october futures opened strong at 5070, didn't go below 5070, made a high of 5157.50 and closed at 5149.40 smartly up by 104.50 points. Bank nifty too opened high at 9655, went down top 9639.90 made a high of 9877 and finally closed at 9856.35 up by whooping 277.25 points. Strength was seen in nifty as it opened higher than yesterday's high and didn't go below it for a whole day.
On volume front, total turnover during the day was 1.38 lac Cr and no. of contracts were 54.34 lac both higher than yesterday. Put call ratio was at 1.13 and volatility as measured by India VIX was 24.05 down by 7%. Some of the higher volume may be attributed to shifting in open positions from current series to new ones. Traded quantity and no. of contracts across all the series were higher than yesterday. No.of trades were lower than yesterday. Open Interest on net basis across all three open series was higher by 1272800 shares indicating some mopping up of positions by Bulls. Increase in open interest coupled with rising volumes is considered to be positive.
| SYMBOL | EXPIRY | OPEN INT | CHG IN OI | TR QTY | CONT | TRADES |
| NIFTY | 25/10/2011 | 18260200 | -1196900 | 163700 | 3274 | -7543 |
| NIFTY | 24/11/2011 | 6401500 | 2439900 | 1699850 | 33997 | 3496 |
| NIFTY | 29/12/2011 | 872950 | 29800 | -209150 | -4183 | -198 |
| TOTAL | 25534650 | 1272800 | 1654400 | 33088 | -4245 |
On stock futures front, heavily traded counters on volume parameter were SBIN, ICICIBANK, TATASTEEL, CROMPTONGREAVES and LT. Top gainers list included MOSERBAER 12%, ABB 7%, BOMDYEING 6%, GMDC 5% and NEYYVELLI 5%. Top losers were CROMPTONGREAVES -13%, SESAGOA -3% PATNI -2% ONMOBILE -2% and EXIDE -2%.
On stock options front, active counters were LT 1400 CE, RELIANCE 840 CE, SBIN 1900 CE, SBIN 1950 CE, SBIN 2000 CE.
On nifty options front, positive change in open interest was seen in 5200 CE (485400) 5300 CE (635100) 5400 CE (225350) 4800 PE (306250) 4900 PE (848700) 5000 PE (521500) 5100 PE (2488050) 5200 PE (606350). Negative change in open interest was seen in 4900 CE (-156300) 5000 CE (-1007750) 5100 CE (-448900) 4600 PE(-287150) 4700 P3 (-298550). Out of the Monet Put Option Open Interest was 5.39 Cr shares and Call Option was 2.26 Cr shares. Open Interest of In the Money Put Option was 34 lac shares and Call option was 98 lac shares.
On technical charts, today was an absolute up day but has remained within the larger band. On down side nifty is taking support at its short term to medium term moving averages and on upper side it is not able to surpass 5175 level. Expiry is approaching near and shifting of positions are taking place. Volatility has come down to 24 levels much lower than the start of the series which was ruling around 33 levels. Some stability is returning to the markets. Some short of wedge has formed between 5225 and 4725 levels. Once we break this wedge formation some meaning movement in price will be witnessed.
In conclusion, today's price movement and this week's price movement compel me to change my bearish stance. On weekly charts if we observe this is 3rd week in progress which has made higher top higher bottom from the low of 4725. Though I am still bearish and not in a mood to change my bearish view. I am waiting for the break out above 5240 and 5360. I feel that this are the levels where we will see good amount of supply. If markets fail to digest this supply we might be headed lower and this entire rally from 4700 level to current level will be considered pull back of larger bear trend. We are nearing inflection point and hence it becomes imperative that we trade cautiously. Don't be shy of squaring off your losing positions at stop loss if you want to trade longer.
Happy Trading
Atul Doshi.
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