Day of Consolidation: August 9, 2012
Nifty August Futures closed at 5350.05 down by 4.70 points.
Bank Nifty closed at 10505.70 down by 53.45 points. Open Interest in Nifty
across all the series was up by 3,26 lakh shares at 2.59 Cr shares. Turnover
was lower than yesterday at Rs 1.03 trillion. Put Call Ratio across all the
series for both Index and Stock Options was at 1.01 up from yesterday’s level. Volatility
as measured by India VIX was lower at 16.33 and Dollar Rupee pair was trading
at 55.45 almost unchanged from yesterday’s level. In all it was a range bound
day with negative bias in banking shares.
In my opinion we are consolidating in a range and as long as
we remain above 5200 we will break this range on upper side with potential
target of 5500. Only cause of worry is banking shares which are giving in their
gains and as Banks form important part of Nifty composition it might drag Nifty
down. As of now Nifty is getting support from other components especially FMCG
and Reliance. Technically, I am bullish in the market but as always it is safe to play with adequate Stop loss.
Happy Trading
Atul Doshi
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