Bloody Day: 23.11.2011
Nifty November Futures after opening weaker was not able to bounce a bit and drifted straight down to 4632 and finally recovered some what lost ground and closed at 4703.90 down by 101.40 points. Bank Nifty too followed the trend and it too closed at 8397.40 down by196.85 points. Large scale Capitulation expected in the market saw its beginning today. There was humungous activity in the market due to roll over and fear. Volumes on all parameter( traded quantity, no. of trades and no. of contracts) were higher than yesterday. Open Interest in both Nifty and Bank Nifty was up by 15.50 lac shares and 2.20 lac shares across all the series. Put Call Ratio too inched up a bit and closed at 0.91. Volatility as measured by India VIX was ruling at 30.68 hugely up by 13 % vindicating once again a fear in the market.
Top Five Individual Stocks where volumes were higher were SBIN ICICIBANK RELIANCE
TATAMOTORS and TATASTEEL. Top Five Individual Stocks which managed to gain today were UNITECH 4% JUBLFOOD 3% TITAN 3% LUPIN 3% and JSWENERGY 2%. Top Five Individual Stocks which lost ground were HINOILEXP -9% SOBHA -8% EKC -8% FSL -8% and UNIPHOS -7%.
Top Five Individual Stock Options which marked higher activity were SBIN1700 CE SBIN 1650 PE SBIN 1650 CE SBIN 1750 CE and RELIANCE 800 CE.
Nifty November Futures after opening weaker was not able to bounce a bit and drifted straight down to 4632 and finally recovered some what lost ground and closed at 4703.90 down by 101.40 points. Bank Nifty too followed the trend and it too closed at 8397.40 down by196.85 points. Large scale Capitulation expected in the market saw its beginning today. There was humungous activity in the market due to roll over and fear. Volumes on all parameter( traded quantity, no. of trades and no. of contracts) were higher than yesterday. Open Interest in both Nifty and Bank Nifty was up by 15.50 lac shares and 2.20 lac shares across all the series. Put Call Ratio too inched up a bit and closed at 0.91. Volatility as measured by India VIX was ruling at 30.68 hugely up by 13 % vindicating once again a fear in the market.
Top Five Individual Stocks where volumes were higher were SBIN ICICIBANK RELIANCE
TATAMOTORS and TATASTEEL. Top Five Individual Stocks which managed to gain today were UNITECH 4% JUBLFOOD 3% TITAN 3% LUPIN 3% and JSWENERGY 2%. Top Five Individual Stocks which lost ground were HINOILEXP -9% SOBHA -8% EKC -8% FSL -8% and UNIPHOS -7%.
Top Five Individual Stock Options which marked higher activity were SBIN1700 CE SBIN 1650 PE SBIN 1650 CE SBIN 1750 CE and RELIANCE 800 CE.
Nifty Option Series where POSITIVE change in Open Interest was witnessed were 4600 CE (8.41 lk) 4700 CE (25.31 lk) 4800 CE (14.52 lk) 4900 CE (2.70 lk) 4400 PE (1.61 lk) 4500 PE (9.43 lk) 4600 PE (16.98 lk) Nifty Option Series where NEGATIVE change in Open Interest was witnessed were5000 CE (- 6.73 lk) 5100 CE (-4.96 lk) 5200 CE (-2.45 lk) 5300 CE (-2.20 lk) 5400 CE (-1.72 lk) 5500 CE (-1.92 lk) 5600 CE (-1.12 lk) 4700 PE (-4.80 lk) 4800 PE (-25.88 lk) 4900 PE (-13.22 lk) 5000 PE (-2.23 lk) 5300 PE (-1.11 lk). Outstanding Open Interest in Out of the Money Put Option was 1.85 Cr shares and that of Call Option was 4.65 Cr shares. Outstanding Open Interest in In the Money Put Option was 1.2 Cr shares and that of Call Option was 47 lac Shares.
To conclude, final capitulation which was expected in the market saw its ugly opening today. There was blood on the street and indices made their new lows. Nifty broke Feb 2010 low of 4667. My all earlier analysis expressed oft repeatedly in several posts was vindicated today. I was telling repeatedly that we will break 4700 level and we did so. We are absolutely in a deep down trend and I would not be surprised if we revisit 4300 level. There will be bounce backs in the market but don't be in hurry to consider them as buying opportunity. Technical Analysis is continuous process and it changes with price movements so please watch levels very carefully. One thing needs to be remembered that bottoms are always made in capitulation and panic like situation. We might have entered that phase but wait for such confirmation. As of now Sell on every rise will yield better returns.
Happy Trading
Atul Doshi.
To conclude, final capitulation which was expected in the market saw its ugly opening today. There was blood on the street and indices made their new lows. Nifty broke Feb 2010 low of 4667. My all earlier analysis expressed oft repeatedly in several posts was vindicated today. I was telling repeatedly that we will break 4700 level and we did so. We are absolutely in a deep down trend and I would not be surprised if we revisit 4300 level. There will be bounce backs in the market but don't be in hurry to consider them as buying opportunity. Technical Analysis is continuous process and it changes with price movements so please watch levels very carefully. One thing needs to be remembered that bottoms are always made in capitulation and panic like situation. We might have entered that phase but wait for such confirmation. As of now Sell on every rise will yield better returns.
Happy Trading
Atul Doshi.
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