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Wednesday, 8 August 2012

Derivatives Daily Update: August 7 2012


Better Day: August 7, 2012

Nifty August Futures closed at 5347.70 up by 50.85 points. Bank Nifty closed at 10620.50 up by 122 points. Open Interest in Nifty was up by 8.63 lakh shares at 2.50 Cr shares across all the series. Turnover was up from yesterday’s level at Rs 1.11 trillion. Put Call Ratio across all the series for both Index & Stock Options was slightly up at 1.03. Volatility as measured by India VIX was almost unchanged at 16.21 and Dollar Rupee pair was trading at 55.30. In all it was a resilient day with upward bias.

In my opinion, as long as we are above 5100-5150 range which also coincides with medium to long term averages and 5200 which is short term average we are in a bullish zone and every dip to this level is a buying opportunity and any such correction should be bought in. Potential book profit level is 5500. It is advisable to trade keeping in mind 5100 as potential stop loss level.

Happy Trading

Atul Doshi

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