Resilient Day: August 14, 2012
Nifty August Futures closed at 5406.85 up by 34.95 points. Bank
Nifty closed at 10576.35 up by 116.50 points. Open Interest in Nifty across all
the series even today saw increase by 8.27 lakh shares at 2.82 Cr shares. Turnover
was Rs 1.09 trillion better from yesterday’s level. Put Call Ratio was 1.14
almost unchanged from yesterday’s level. Volatility as measured by India VIX
was at its 52 wk low at 15.64 and Dollar Rupee pair was trading higher at
55.80. In all it was a resilient day.
Option writers wrote Put Options of 5200 5300 & 5400 series and squared off
Call options for the same series. Some profit booking is expected as VIX was
trading at its lowest and there is a chance that it might shoot up a bit which
in turn will put pressure on price.
Once again my belief that we are in intermediate uptrend is
vindicated today. Market participants are confident about the up move as it is
also supported by reduced volatility. As long as we remain above 5275 which is
short term moving average we are comfortably heading towards first target of
5500 and above that 5630. My advice is to hold on to your long positions with
stop loss below 5275.
Happy Trading
Atul Doshi
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