Terribly Weak Day : 14.11.2011
Nifty November Futures after opening with a gap of nearly 50 points gave away all its gain and closed at 5155.85 down by 35.90 points. Bank Nifty November Futures was even more vulnerable as it didn't surpass its yesterday's high and closed at 9276.40 down by 43.60 points though percentage fall of Nifty was higher than Bank Nifty. Total turnover both volume wise and value wise were lower than yesterday in both the indices futures. On a day when markets have closed lower, Open Interest in Nifty Futures across all the series have increased by 8.39 lac shares which shows that fresh shorts has been created in the market. Bank Nifty too saw a increase in Open Interest by 63 k shares. Put Call Ratio has marginally came down to 0.90 and Volatility as measured by India VIX was ruling at 25.29 up by 2%. In substance Markets were not able to sustain as it witnessed selling at higher levels.
Five Individual Stock Futures which attracted higher volumes were SBIN RENUKA TATAMOTORS TATASTEEL ICICIBANK. Top Five gainers were KFA 10% SUNTV 4% MCDOWELL 4% HEXAWARE 4% MUNDRAPORT 3%. Top losers were RENUKA -26% SKUMARS -15% BALRAM -11% EDUCOMP -10% VIPIND -10%.
Five Individual Stock Options where higher volumes where seen were SBIN 1800 CE SBIN 1900 CE SBIN 1850 CE SBIN 1800 PE SBIN 2000 CE.
Nifty Option Series where increase in Open Interest was witnessed were 5100 CE ( 3.82 lac) 5200 CE ( 5.74 lac) 5300 CE (3.48 lac) 5400 CE ( 3.22 lac) 5500 CE ( 2.64 lac) 4900 PE (4.14 lac) 5000 PE (5.25 lac) 5100 PE (7.24 lac) 5200 PE ( 4.41 lac). Nifty Option Series where decrease in Open Interest was witnessed were 5700 CE (-1.54 lac) 4800 PE (-2.20 lac) 5300 PE (-1.1 lac) 5400 PE (-2.19 lac). Out of the Money Open Interest in Put Options was 3.38 Cr shares and that of Call Option was 2.96 Cr shares. In the Money Open Interest in Put Option was 94 lac shares and that of Call Option was 48 lac shares.
To conclude, today's price movements indicate that we have broken the range on down side and probability of markets touching recent low of 4718 or even going below that has once again become live. As indicated several times in earlier posts, my opinion is tilted towards markets going down. Put Call Ratio remaining below 1 indicates that traders are not gung ho about the markets. It is advisable to short the Nifty with adequate stops which may be placed above 200 DMA of 5340.
Happy Trading
Atul Doshi
Nifty November Futures after opening with a gap of nearly 50 points gave away all its gain and closed at 5155.85 down by 35.90 points. Bank Nifty November Futures was even more vulnerable as it didn't surpass its yesterday's high and closed at 9276.40 down by 43.60 points though percentage fall of Nifty was higher than Bank Nifty. Total turnover both volume wise and value wise were lower than yesterday in both the indices futures. On a day when markets have closed lower, Open Interest in Nifty Futures across all the series have increased by 8.39 lac shares which shows that fresh shorts has been created in the market. Bank Nifty too saw a increase in Open Interest by 63 k shares. Put Call Ratio has marginally came down to 0.90 and Volatility as measured by India VIX was ruling at 25.29 up by 2%. In substance Markets were not able to sustain as it witnessed selling at higher levels.
Five Individual Stock Futures which attracted higher volumes were SBIN RENUKA TATAMOTORS TATASTEEL ICICIBANK. Top Five gainers were KFA 10% SUNTV 4% MCDOWELL 4% HEXAWARE 4% MUNDRAPORT 3%. Top losers were RENUKA -26% SKUMARS -15% BALRAM -11% EDUCOMP -10% VIPIND -10%.
Five Individual Stock Options where higher volumes where seen were SBIN 1800 CE SBIN 1900 CE SBIN 1850 CE SBIN 1800 PE SBIN 2000 CE.
Nifty Option Series where increase in Open Interest was witnessed were 5100 CE ( 3.82 lac) 5200 CE ( 5.74 lac) 5300 CE (3.48 lac) 5400 CE ( 3.22 lac) 5500 CE ( 2.64 lac) 4900 PE (4.14 lac) 5000 PE (5.25 lac) 5100 PE (7.24 lac) 5200 PE ( 4.41 lac). Nifty Option Series where decrease in Open Interest was witnessed were 5700 CE (-1.54 lac) 4800 PE (-2.20 lac) 5300 PE (-1.1 lac) 5400 PE (-2.19 lac). Out of the Money Open Interest in Put Options was 3.38 Cr shares and that of Call Option was 2.96 Cr shares. In the Money Open Interest in Put Option was 94 lac shares and that of Call Option was 48 lac shares.
To conclude, today's price movements indicate that we have broken the range on down side and probability of markets touching recent low of 4718 or even going below that has once again become live. As indicated several times in earlier posts, my opinion is tilted towards markets going down. Put Call Ratio remaining below 1 indicates that traders are not gung ho about the markets. It is advisable to short the Nifty with adequate stops which may be placed above 200 DMA of 5340.
Happy Trading
Atul Doshi
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