Stable Expiry Day: August 30, 2012
Nifty August Futures closed at 5306.90 up by 10.30 points. Bank
Nifty closed at 10065.85 up by 31.15 points. Open Interest in Nifty though not use
worthy was up by 10 lakh shares at 3.33 Cr shares. Any way September series
Open Interest was up by 51 lakh shares which is a huge jump. Turnover was up at
Rs 2.59 trillion obviously due to roll over activity. Put Call Ratio was at
0.87. Volatility as measured by India VIX was at 16.67 slightly down from
yesterday’s level and Dollar Rupee pair was trading at 55.87 up from yesterday’s
level. In all it was a stable expiry.
As we closed below 5300 yesterday, likely down ward target
for short term were 5270 and 5230. We went few points down 5270 but have
survived 5230 which is a turning point for change in trend. Unless we break
5230 on closing level, fall from higher level will be considered a healthy
correction and we might move towards achieving 5500 and subsequently 5630. My
advice to traders would be to go long with Stop loss below 5230. If we break
5230 in coming few days than it is advisable to close all long positions and
wait for couple of days to decide future trend.
Happy Trading
Atul Doshi
Got to learn good facts on derivative market here. Investing in future contracts helps in hedging risk against price fluctuations which are likely to occur in future.
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