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Monday, 13 August 2012

Derivatives Daily Update: August 13 2012


Better Day: August 13, 2012

Nifty August Futures closed at 5371.9 up by 26.8 points. Bank Nifty closed at 10459.85 up by 35.15 points. Open Interest in Nifty across all the series was up by 10.41 lakh shares at 2.63 Cr shares which augur well for the market especially when markets have closed higher than previous days as it indicates mopping up of positions by Bulls. Turnover was at Rs 835 bn. Put Call Ratio was up at 1.15 which also indicates bullish sentiments as participants were writing more Puts against Calls as they see market moving up in near futures. Volatility as measured by India VIX was almost unchanged at 16.01 again helping the market from unwarranted choppiness. Dollar Rupee pair was trading at 55.51. In all it was a better trading day than previous one.

My prognosis that we are in intermediate uptrend is once again vindicated today. Target price in Nifty of 5500 is achievable provided, in coming days we don’t fall below 5200. My advice is to hold on long positions in Nifty with adequate stop loss.

Happy Trading

Atul Doshi

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