Profit Booking Day: August 24, 2012
Nifty Futures closed at 5402.70 down by 24.45 points. Bank
Nifty closed at 10366.95 down by 116.20 points. Open Interest in Nifty across
all the series almost unchanged at 2.94 Cr shares. Turnover too was almost
unchanged at Rs 1.29 trillion. Put Call Ratio was also unchanged at 1.22. Even
Volatility as measured by India VIX was almost unchanged at 16.16. Dollar Rupee
pair was trading slightly higher at 55.49. In all it was a eventless day and
witnessed some amount of day trading activity with marginal negative bias.
In my opinion, Nifty is consolidating after continuous
winning streak from last couple of weeks. Today after many days we saw lower
top lower bottom formation which indicates some profit booking at higher levels
or alternatively no new buying coming at higher levels. As traders didn’t saw
further follow up in buying interest they squared off their positions. I still
believe that as long as we remain above 5300, target price of 5500 and 5630 are
achievable. Only worry is VIX. If it starts moving up we might witness pressure
on Nifty and before touching targets on upper side, we might go and test 5300.
Traders are advised to remain cautious and trade with strict stop loss.
Happy Trading
Atul Doshi
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