Weakness Persists: August 29, 2012
Nifty August Futures closed at 5296.60 down by 49.45 points.
Bank Nifty closed at 10034.7 down by 55.75 points. Open Interest in Nifty
across all the series came down by 3.15 lakh shares at 3.24 Cr shares. Turnover
was almost same at Rs 1.70 trillion. Put Call Ratio was pegged at 0.87 way
below 1 which is not a good sign as traders are losing confidence and Option
writers are writing Calls and squaring off Puts. Traders are no more gung ho
about the markets. Volatility as measured by India VIX was up by 2% at 16.74 and
Dollar Rupee pair was trading slightly lower at 55.67. In spite of the VIX not
rising steeply and Dollar Rupee pair trading favorably, we saw fall in price of
Nifty by nearly 1% which indicates some more pain tomorrow.
Today we have closed below 5300 which doesn’t augur well for
markets as it has opened probability of market touching 5275 and if fall below
this level than 5230. Any way still medium to long term trend has not vitiated
as long as we remain above 5230. Medium to long term traders can still buy with
5230 as ultimate stop loss. For short term traders selling, with price
objective of 5300 was advised which was achieved today. Any way if tomorrow
Nifty doesn’t move above 5325 it is advisable to sell with price target of 5275
and 5230.
Happy Trading
Atul Doshi
No comments:
Post a Comment