A Down Day: 20.10.2011
On price charts, nifty opened lower at 5098, drifted all the way down to 5033.20, bounced back to 5111 and closed at 5102.85 down by 46.55 points. Bank nifty too opened lower at 9785, drifted down to 9611.65, bounced back to 9794.40 and finally closed at 9856.35 down by 83.60 points. Both the indices made lower top lower bottom.
On volume charts, total no. of contracts traded were 63.29 lac and total turnover recorded was 1.59 lac Cr. both up from yesterday's level, thanks partly to shifting of positions from current series to new series. Put call ratio was at 1.04 and volatility as measured by India VIX was ruling at 25.60 up by nearly 7% from yesterday's level. Traded quantity, no. of contracts as well as no.of trades were all higher than yesterday. Open interest across all the series on net basis was marginally up by 192000 shares.
On stock futures front, top traded counters on volume parameter were SBIN, ICICIBANK, TATASTEEL, RELIANCE and DLF. Top gainers were MOSERBAER 7%, RAYMOND 3%, TRIVENI 3%, BOMDYEING 3% and BFUTILITIES 2%. Top losers were EXIDEIND -8%, LICHOUSING -6%, SREIINFRA -6%, HDFC -4% and IRBINFRA -4%.
On stock options front heavily traded series were SBIN 1950 CE, SBIN 1900 CE, SBIN 2000 CE, RELIANCE 840 CE and SBIN 1900 PE.
On nifty options front, positive change in open interest was seen in 5000 CE (1206250) 5100 CE (1575200) 5200 CE (1670700) 5300 CE (177650) 4500 PE (1376100) 4700 PE (132000) 4800 PE (277500) 5100 PE (124550). No substantial negative change in open interest was seen in any series. Open interest in Out of the Money Put Options was 5.42 Cr shares. and Call Options was 2.40 Cr shares. Open interest in In the Money Put Options was 31.42 lac and call option was 1.16 Cr shares.
On technical charts, movement in nifty is absolutely range bound. It is taking support at moving averages and feels pressure near 5175 level. from the last gap down (5337-5191) on 05.08.2011 till date it is trading in a broad range of 5200-4700. In this period it has attempted to breach 5175 level thrice and 4718 level twice but has failed to do so. Once it is able to do so momentum on that side might be seen in the market.
In nutshell, my view still remains bearish for longer term trading. Nifty should have corrected 61.8% of fall long before but it failed to do so. Even if nifty was to correct to 5362, 61.8% of fall (5760-4718), time-wise it has failed to do so. Hence level of 5362 even reached will be very vulnerable and difficult to sustain. even after reaching 5362 level chance of revisiting recent low of 4718 still exists on chart. But for now watch the range very carefully, wait for breakout and than participate on side of momentum. For short term trader buy near 5000 level and sell around 5150 level with strict stop loss.
Happy trading
Atul Doshi
Note: If you like or dislike the post please feel free to leave your comment.
On price charts, nifty opened lower at 5098, drifted all the way down to 5033.20, bounced back to 5111 and closed at 5102.85 down by 46.55 points. Bank nifty too opened lower at 9785, drifted down to 9611.65, bounced back to 9794.40 and finally closed at 9856.35 down by 83.60 points. Both the indices made lower top lower bottom.
On volume charts, total no. of contracts traded were 63.29 lac and total turnover recorded was 1.59 lac Cr. both up from yesterday's level, thanks partly to shifting of positions from current series to new series. Put call ratio was at 1.04 and volatility as measured by India VIX was ruling at 25.60 up by nearly 7% from yesterday's level. Traded quantity, no. of contracts as well as no.of trades were all higher than yesterday. Open interest across all the series on net basis was marginally up by 192000 shares.
| SYMBOL | EXPIRY | OPEN INT | CHG IN OI | TR QTY | CONT | TRADES |
| NIFTY | 25/10/2011 | 16489550 | -1770650 | 3800750 | 76015 | 25265 |
| NIFTY | 24/11/2011 | 8282700 | 1881200 | 1045700 | 20914 | 14461 |
| NIFTY | 29/12/2011 | 954400 | 81450 | 39550 | 791 | 548 |
| TOTAL | 25726650 | 192000 | 4886000 | 97720 | 40274 |
On stock futures front, top traded counters on volume parameter were SBIN, ICICIBANK, TATASTEEL, RELIANCE and DLF. Top gainers were MOSERBAER 7%, RAYMOND 3%, TRIVENI 3%, BOMDYEING 3% and BFUTILITIES 2%. Top losers were EXIDEIND -8%, LICHOUSING -6%, SREIINFRA -6%, HDFC -4% and IRBINFRA -4%.
On stock options front heavily traded series were SBIN 1950 CE, SBIN 1900 CE, SBIN 2000 CE, RELIANCE 840 CE and SBIN 1900 PE.
On nifty options front, positive change in open interest was seen in 5000 CE (1206250) 5100 CE (1575200) 5200 CE (1670700) 5300 CE (177650) 4500 PE (1376100) 4700 PE (132000) 4800 PE (277500) 5100 PE (124550). No substantial negative change in open interest was seen in any series. Open interest in Out of the Money Put Options was 5.42 Cr shares. and Call Options was 2.40 Cr shares. Open interest in In the Money Put Options was 31.42 lac and call option was 1.16 Cr shares.
On technical charts, movement in nifty is absolutely range bound. It is taking support at moving averages and feels pressure near 5175 level. from the last gap down (5337-5191) on 05.08.2011 till date it is trading in a broad range of 5200-4700. In this period it has attempted to breach 5175 level thrice and 4718 level twice but has failed to do so. Once it is able to do so momentum on that side might be seen in the market.
In nutshell, my view still remains bearish for longer term trading. Nifty should have corrected 61.8% of fall long before but it failed to do so. Even if nifty was to correct to 5362, 61.8% of fall (5760-4718), time-wise it has failed to do so. Hence level of 5362 even reached will be very vulnerable and difficult to sustain. even after reaching 5362 level chance of revisiting recent low of 4718 still exists on chart. But for now watch the range very carefully, wait for breakout and than participate on side of momentum. For short term trader buy near 5000 level and sell around 5150 level with strict stop loss.
Happy trading
Atul Doshi
Note: If you like or dislike the post please feel free to leave your comment.
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