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Wednesday, 5 September 2012

Derivatives Daily Update: September 5 2012



Weak Day: September 5, 2012

Nifty September Futures closed at 5253.35 down by 46.05 points. Bank Nifty closed at 9899.95 down by 188.10 points. Turnover was up at Rs 841 bn. Open Interest was down by 85k at 2 Cr shares. Put Call Ratio across all the series was slightly up at 0.82. Volatility as measured by India VIX was up by 2.5% at 17.01 causing Nifty to fall. Dollar Rupee pair was also trading higher at 56.06 which further caused Nifty to remain under pressure. In all it was a weak day and as traders didn’t find any follow up buying they were tempted to square off their positions.

We have breached 5270 on closing basis which doesn’t augur well for the market. Incidentally 5257 is medium term moving average and today we have closed below it too. If we are unable to bounce back tomorrow, above this level on closing basis than probably, we are heading towards 5125 which is long term moving average and most likely might go and test 5033. Extreme caution is advised to traders.

Happy Trading

Atul Doshi

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