Day of Consolidation: August 23, 2012
Nifty August Futures closed at 5427.15 marginally down by
3.95 points. Bank Nifty closed at 10483.15 down by 24.40 points. Open Interest
in Nifty across all series was up by 1.93 lakh shares at 2.94 Cr shares.
Turnover was up at Rs 1.30 trillion. Put Call Ratio across all the series for
both Index & Stock Options was almost unchanged at 1.21. Volatility as
measured by India VIX was marginally up at 16.12 and Dollar Rupee pair was
trading at 55.22 slightly down from yesterday’s level. In all it was a day of
consolidation though nifty today also made a higher high than yesterday.
I believe that we are in intermediate uptrend and every dip
in the market invites some buying which helps market to pull back. As long as
we are above 5300 on a broad basis target of 5500 and subsequent to that 5630
is very much likely. Only reason to worry is VIX. It might shoot up a bit as it
is trading at its lowest level which in turn might put pressure on price of
Nifty. Anyway even VIX is not likely to move up behind 18-19 in a hurry. My
advice therefore is to buy in every dip with adequate stop loss.
Happy Trading
Atul Doshi
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