Bull Run
Continues: September 17, 2012
Nifty September Futures opened with a gap for second
consecutive day and closed higher at 5616.70 up by 31.80 points. Bank Nifty
closed higher by 326.45 points at 10977.30. Open Interest in Nifty across all
series was up by 12.32 lakh shares at 2.40 Cr shares. Turnover was high at Rs
1.94 trillion. Put Call Ratio across all the series for both Index & Stock
option was down at 0.94. Volatility as measured by India VIX was smartly up by
16% at 17.78 and Dollar Rupee pair was trading lower at 53.81. In all it was a
bullish day.
As far as price momentum is concerned it is very much
evident in the market. My price target of 5630 was achieved today. In medium to
long term it seems that momentum will continue and we might go and kiss 5760
with slight hiccup at 5700. In short run though it seems that we might go and
consolidate around 5550 level. The reason which leads me to believe this is
twofold. One, Volatility has drastically shot up and if it continues to do so
it might put pressure on price of Nifty. Second, Put Call Ratio has fallen
below 1 which doesn’t augur well for the market but mind you these are short
term hiccups and after that upward momentum might continue. It is advisable to
hold your longs or add in dips with ultimate price target of 5760.
Happy Trading
Atul Doshi
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