Mediocre Opening: 25 Nov 2011
Nifty December Future saw an unimpressive movement. It opened almost unchanged and closed lower by 44 points at 4710.95. Bank Nifty too saw mediocre movement and it closed flat at 8484.75 up by 8 points. Turnover obviously was low compare to yesterday and Nifty Futures saw increase in Open Interest by 5.83 lac shares. Put Call Ratio stood at 1.05 and volatility as measured by India VIX was ruling at 29 slightly up from yesterday’s level. All in all opening session was not noteworthy and listless. Let us see how new series pans out from Monday.
Five individual stocks which commanded higher volumes were SBIN, ICICIBANK, TATAMOTORS, LT and DLF. Five top gainers were PANTALLON 17%, JETAIR 13%, CESC 8%, KFA 8% and DCHL 8%. Five top losers were HINDALCO -4%, RPOWER -4%, MARUTI -4%, STER -4% and SESAGOA -3%.
Five individual stock options which attracted higher activity were SBIN 1700 CE, SBIN 1800 CE, RELIANCE 800 CE TATAMOTORS 180 CE and RELIANCE 780 CE.
Nifty option series where major POSITIVE change in open interest was seen were 4700 CE (4.05 lk) 4800 CE (12.11 lk) 4900 CE (4.5 lk) 5000 CE (6.38 lk) 5100 CE (9.66 lk) 5300 CE (3.04 lk) 3900 PE (2.50 lk) 4000 PE (16.75 lk) 4100 PE ( 3 lk) 4200 PE (2.5 lk) 4300 PE (2.67 lk) 4400 PE (4.71 lk) 4500 PE (7.25 lk) 4600 PE (7.37 lk) 4700 PE (11.56 lk) 4800 PE (4.63 lk).
In nutshell, as said at the outset today was an unimpressive day. We are in a long term bear trend and testing of 4300 level is very much on cards. Nifty has taken support at 4630 level making it double bottom. Whether we will be able to survive or break this level, only time will tell but likelihood of it breaking the same is very strong. My advice is to short the Nifty with 5050 as potential stop loss. Bull traders can take a punt with 4630 or broadly 4600 as stop loss and price objective of 4800 -4850 level.
Happy Trading
Atul Doshi
No comments:
Post a Comment