Bulls Ride: 2 Dec 2011
Nifty December Futures opened lower for a moment and smartly recovered making a high of 5094, closing finally at 5080.70 up by 116.95 points. Bank Nifty December futures too closed at 9207.60 up by whooping 284.65 points. Volumes in the market were fairly better than yesterday. Open Interest in Nifty Futures saw an increase of 4.15 lac shares across all series and Bank Nifty too saw a modest increase in Open Interest by 22 k shares. Put Call Ratio came down to 0.94 from 1.08 from yesterday’s levels. Volatility as measured by India VIX too came down by 5% and stood at 23.99 as against 25.02. All in all it was a day of Bull.
Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, TATASTEEL, RELIANCE and TATAMOTORS.
Top five individual stocks which gained today were ADANIENT 11% TRIVENI 9% PTC 8% AMBUJACEM 8% and FEDERALBANK 8%.
Top five individual stocks which lost ground were UNIPHOS -3% BRFL -3% RUCHISOYA -1% ABGSHIP -1% and HEROMOTORS -1%.
Top five individual options which attracted higher activity today were SBIN 1900 CE SBIN 1850 CE SBIN 1800 PE TATASTEEL 420 CE and SBIN 1700 PE.
Nifty option series where POSITIVE change in open interest was seen were 5200 CE (7.70 LK) 5300 CE (6.66 LK) 5400 CE (1.95 LK) 5500 CE (2.11 LK) 4500 PE (2.25 LK) 4600 PE (3.16 LK) 4700 PE (5 LK) 4800 PE (1.5 LK) 4900 PE (14.45 LK) 5000 PE (14.27 LK) 5100 PE (16.09 LK) 5200 PE (1.61 LK)
Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-5.09 LK) 4800 CE (-5.27 LK) 5000 CE (-5.70 LK) 5100 CE (-7.11 LK) 4200 PE (-1.39 LK) 4300 PE (-2.52 LK)
In conclusion, as said in earlier couple of posts, short term objective of price target of 5050 has been achieved today. Those who ventured to buy has benefited out of the trade. Those who are still hanging with their bull positions are advised to hold with stop below 5025 as it coincides with 50 day moving average with a price objective 0f 5350 level as it is both 200 DEMA (day exponential moving average) and inflection point of falling neck line joining earlier tops. In long run though view is still bearish and this time too we might not be able to break this falling line. So guys who have larger pockets can short the market with 5400 as stop with price objective below 4600 levels.
Happy Trading
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