Weak Day: May 14, 2012
Nifty May Futures for the better part of the day didn’t
trade due to some technical snag. Any way it closed lower than yesterday and
continued its stride downwards. Volatility as measured by India VIX was up by
3% at 23.26. Dollar Rupee pair was trading higher at 54.01. In all markets were
under selling pressure and weakness persisted through out the day after opening
in a positive zone.
In my opinion, since Nifty has broken 4950 an important
retracement support and even closed below it for second day in a row indicates end of the Bull Run.. It is advisable to get
out of long positions if one is still holding and wait for the opportune time.
Once we close below this level for couple of days, we might drift further. New
support might emerge at 4800 levels as this level is 200 WMA. Since daily
charts have already weakened we need to see if are able to make any meaningful
bottom at around 4800 levels. Trade cautiously and with strict stop loss.
Top five individual stocks which gained today were DIVISLAB
7%, LUPIN 5%, TTKPRESTIG 5%, DABUR 4% and MPHASIS 4%.
Top five individual stocks which lost ground were ORCHIDCHEM
-18%, IVRCLINFRA -14%, PRAJIND -11%, BOMDYEING -11% and EDUCOMP -7%
Top five individual stocks which attracted higher volumes
were LT, SBIN, ICICIBANK, AXISBANK and RELIANCE.
Top five individual options which attracted higher activity
today were LT 1200 CE, LT 1100 PE, SBIN 1900 CE, LT 1150 CE and SBIN 2000 CE.
Nifty option series where POSITIVE
change in open interest was seen were 4800 CE (2.40 LK) 4900 CE (4.53 LK) 5000
CE (5.89 LK) 5100 CE (2.88 LK) 5200 CE (4.30 LK) 4500 PE (3.17 LK) 4700 PE
(4.64 LK) 4800 PE (4.86 LK) 4900 PE (2.45 LK) 5100 PE (2.32 LK)
Nifty option series where NEGATIVE change in open interest
was seen were 5400 CE (1.45 LK) 5500 CE (1.02 LK) 5700 CE (4.33 LK) 4600 PE
(2.05 LK) 5000 PE (1.50 LK) 5200 PE (1.05 LK)
Outstanding open interest in Out of the Money Call Options
stood at 4.34 Cr shares and that of Put Options stood at 2.89 Cr shares.
Outstanding open interest in In the Money Call Options stood at 52.20 LK shares
and that of Put Options stood at 1.49 Cr shares. Put Call Ratio of current
series alone stands at 0.90
.
Happy Trading
Atul Doshi
thanks, atulbhai for your expert analysis in this time of uncertainty. I have started getting calls from fence sitters for opinion to enter market.
ReplyDeleteAmit Kabra
Hi Amitbhai, Thanks for valuing my opinion. I would like to tell you that this analysis is for future traders who are trading day in and day out. For investors like you it is good time to bargain hunt stocks. Divide your investible fund in five parts and start investing with 2 to 3 years perspective. It would generate a good return from this level but don't just buy and hold. When ever your price targets are achieved get out from the stocks.
DeleteThanks for the advice. Warm Regards.. Amit Kabra
Delete