Shattering Day : 17.11.2011
There was absolute carnage on the Street. Nifty November Futures after opening marginally up from yesterday's closing was not even able to surpass its opening price of 5052. It went down to 4915 and closed at 4932.95 down by 111.95 points. Bank Nifty November futures too closed at 8890.15 down by 177.95 points. Volumes through out the day were lower and picked up the momentum only in last 1 hour. No. of contracts and No. of trades were lower than yesterday but Open Interest across all series in Nifty was substantially up by 16.95 lac shares. Built up of shorts were seen in new series. Bank Nifty too volumes were lower but Open Interest there too was higher by 2.59 lac shares. Increase in Open Interest on down day indicates there was huge built up in short positions. Put Call Ratio was at 0.83 and Volatility as measured by India VIX closed at 26.92 up by 8%. Increase in Volatility suggests traders are weary about the markets and perceive some immediate risk in price movements.
Top five Individual Stocks which saw higher volumes were SBIN ICICIBANK RELIANCE TATAMOTORS TATASTEEL. Top Five Individual Stocks which saw higher closing were PATNI 9% PANTALOON 6% SOBHA 5% MPHASIS 4% IVRCLINFRA 4%. Top five Individual Stocks which lost ground were SUZLON -12% INDIAINFO -12% SKUMARS -11% APIL -9% ADANIENT -7%.
Top five Individual Stock Options which attracted higher volumes were SBIN 1800 CE RELIANCE 840 CE SBIN 1750 PE SBIN 1700 PE TATASTEEL 420 CE.
Nifty Option Series where POSITIVE change in Open Interest was witnessed were 4900 CE (25.95 lac) 5000 CE (13.79 lac) 5100 CE (12.14 lac) 5200 CE (11.15 lac) 5300 CE (7.7 lac) 4500 PE (1.7 lac) 4600 PE (1.83 lac) 4700 PE (4.57 lac) 4800 PE (6.89 lac) 4900 PE (13.94 lac). Nifty Option Series where NEGATIVE change in Open Interest was witnessed were 5400 CE (-2.11 lac) 5500 CE (-3.85 lac) 5000 PE (-13.10 lac) 5100 PE (-6.28 lac) 5200 PE (-3.52 lac) 5300 PE 9-1.27 lac). Outstanding Open Interest in Out of the Money Put Option stood at 2.33 Cr shares and that of Call Option stood at 4.10 Cr shares. Outstanding Open Interest in In the Money Put Option stood at 1.45 Cr shares and that of Call Option stood at 42 lac shares. Option traders were busy writing (selling) out of the money options and were squaring off in the money options.
My prognosis that markets are in long term bear trend is once again vindicated today. Downward journey might take us to 4700 levels or may be below that. Some support exist at 4780 level which is 200 Week's moving average. Trade with strict stop losses as markets have again turned choppy and volatile. Advise is to short Nifty in tranches and keep some meaningful stop loss.
Happy Trading
Atul Doshi
There was absolute carnage on the Street. Nifty November Futures after opening marginally up from yesterday's closing was not even able to surpass its opening price of 5052. It went down to 4915 and closed at 4932.95 down by 111.95 points. Bank Nifty November futures too closed at 8890.15 down by 177.95 points. Volumes through out the day were lower and picked up the momentum only in last 1 hour. No. of contracts and No. of trades were lower than yesterday but Open Interest across all series in Nifty was substantially up by 16.95 lac shares. Built up of shorts were seen in new series. Bank Nifty too volumes were lower but Open Interest there too was higher by 2.59 lac shares. Increase in Open Interest on down day indicates there was huge built up in short positions. Put Call Ratio was at 0.83 and Volatility as measured by India VIX closed at 26.92 up by 8%. Increase in Volatility suggests traders are weary about the markets and perceive some immediate risk in price movements.
Top five Individual Stocks which saw higher volumes were SBIN ICICIBANK RELIANCE TATAMOTORS TATASTEEL. Top Five Individual Stocks which saw higher closing were PATNI 9% PANTALOON 6% SOBHA 5% MPHASIS 4% IVRCLINFRA 4%. Top five Individual Stocks which lost ground were SUZLON -12% INDIAINFO -12% SKUMARS -11% APIL -9% ADANIENT -7%.
Top five Individual Stock Options which attracted higher volumes were SBIN 1800 CE RELIANCE 840 CE SBIN 1750 PE SBIN 1700 PE TATASTEEL 420 CE.
Nifty Option Series where POSITIVE change in Open Interest was witnessed were 4900 CE (25.95 lac) 5000 CE (13.79 lac) 5100 CE (12.14 lac) 5200 CE (11.15 lac) 5300 CE (7.7 lac) 4500 PE (1.7 lac) 4600 PE (1.83 lac) 4700 PE (4.57 lac) 4800 PE (6.89 lac) 4900 PE (13.94 lac). Nifty Option Series where NEGATIVE change in Open Interest was witnessed were 5400 CE (-2.11 lac) 5500 CE (-3.85 lac) 5000 PE (-13.10 lac) 5100 PE (-6.28 lac) 5200 PE (-3.52 lac) 5300 PE 9-1.27 lac). Outstanding Open Interest in Out of the Money Put Option stood at 2.33 Cr shares and that of Call Option stood at 4.10 Cr shares. Outstanding Open Interest in In the Money Put Option stood at 1.45 Cr shares and that of Call Option stood at 42 lac shares. Option traders were busy writing (selling) out of the money options and were squaring off in the money options.
My prognosis that markets are in long term bear trend is once again vindicated today. Downward journey might take us to 4700 levels or may be below that. Some support exist at 4780 level which is 200 Week's moving average. Trade with strict stop losses as markets have again turned choppy and volatile. Advise is to short Nifty in tranches and keep some meaningful stop loss.
Happy Trading
Atul Doshi
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