NSE revises lot sizes of F&O scrips w.e.f. Apr 30, 2010.
SEBI has advised exchange to standardize lot size for derivative contracts on individual securities once in every 6 months as per circular no. SEBI/DNPD/Cir- 50/2010 dated January 8, 2010.
FUTURES AND OPTIONS SEGMENT: Circular No. 029
"Stability itself is nothing else than a more sluggish motion." - Michel de Montaigne.
PAST WEEK:: Owing to expiry, there were wild moves on both sides. Since largest Open Interest was centered around 5200, Nifty hovered and closed pretty much near it. After trading in a very narrow range in the last week, it closed pretty much where it left the previous week. This shows the tug of war between bulls and bears. Neither sure which way to trade at the end of the day/week.
NEXT WEEK:: A clear indecisiveness has been seen in weekly nifty chart also, probably for expiry week. We may get more clarity in the coming week(s). It is difficult to state which direction market will head next week. It closed above the 5 DMA and 20 DMA levels and RSI around 80, indicating that the market is looking extremely volatile ahead. As usual, 5200 will act as the strong support for the markets in the short term in case of weakness in the markets and traders need not worry as long as 5200 is sustained on closing basis.
NIFTY TRADERS GET CAUTION ABOVE 5288 LEVEL.
GLOBAL MARKETS ARE ALSO TRADING WITH CAUTION.
WE EXPECT A WIDE RANGE AND VOLATILE TRADING.
ALSO DON'T EXPECT SHARP CORRECTION IN NEXT WEEK.
BILLIONS ARE WAITING OUTSIDE TO COME INDIA FROM EUROPE. If you have already initiated a short position, trade with strict stoploss. Its not really a good idea to go long in the coming week since there is a chance of negative divergence developing up. It is better to wait until the dust settles down and nifty clearly indicates which way it is going to go. Yes, we may loose a few points early on, but there will be lot more that we can catch with more confidence. If we are unable to break above BB center line in the coming week, one can accumulate short positions as we go forward.
03.05.2010 (MONDAY):: Nifty May 2010 futures were at 5260.50 (5262.80 at closing session), at a discount of 17.50 points to spot closing of 5,278. Turnover in NSE F&O segment was Rs 58,815.19 crore, sharply lower than Rs 1,25,435.85 crore on Thursday, 29 April 2010.
NIFTY IN A CONSOLIDATION PHASE ……………….
Nifty Futures opened flat to higher by approx 10 points @ 5264 on Friday. It swiftly moved higher towards 5290 making the same as an intraday high, but found resistance at this mark and could not pass by the 5300 level. Nifty futures traded the whole session in a narrow range of 25 points and finally slipped towards the intraday low of 5252 and closing the lackluster session @ 5260.
Nifty futures is trading at an important level of 5250 waiting for fresh cues to move the markets. The immediate important level to watch for are 5200 and thereafter at 5150 on the down side. The levels to watch for on upside are at 5300 and thereafter @ 5350. Nifty futures seems to be stuck in a narrow range of 5200 – 5350 zone from last couple of sessions. SO WE MAY ASSUME THAT NEXT WEEK ALSO, WE MAY SEE THE RANGE OF 5180-5300.
A close on either side of the range will move the Nifty futures by 200 points.
EXPECTED RANGE FOR MONDAY : 5201-5314
RESISTANCE .. 5268/5298/5316
SUPPORTS ...... 5225/5200
TRADING IDEA:: THE OPEN INTEREST IN THE RELIANCE 1100CA INCREASED BY 19% ON FRIDAY AND THAT OF RNRL 90CA BY 39.50%. It looks like the big sharks have adopted the following strategy: Buy Reliance 1100CA and buy RNRL 90CA. This would be the perfect hedge for the judgment ahead. If Reliance wins, then the 1100 will score well. If RNRL gets the decision in their favor, then the 90CA will go vertically north. The strategy seems to be on fairly rational ground. The combined investment for buying 1 lot of each will be around 10,000 and the profits if the decision does come through (provided Europe as well as Goldman don’t gatecrash into the party), would be quite more than reasonable. So, once the judgment comes in, ride the favorable option and immediately discard the other one.
FUTURES:: Sell Nifty future below 5260 with a stoploss of 5271 for a target 5225 and 5205
OPTIONS:: Buy 5200 PE around 80-81 with a strict stoploss of 74 for a target 100 and 112
STOCKS:: Buy GSPL only above 96.60 with stoploss of 94.90 for a target of 98, 100.55 and 103. Sell Educomp around 690 with stoploss of 700 for a target of 675, 660 and 651
Disclaimer:: Intraday trading is very risky. It may goes against you. Traders are advised to trade as per their risk taking apetite.
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett
SEBI has advised exchange to standardize lot size for derivative contracts on individual securities once in every 6 months as per circular no. SEBI/DNPD/Cir- 50/2010 dated January 8, 2010.
For details, go through ::
http://www.moneycontrol.com/news_html_files/news_attachment/%202010/faop14475.pdfFUTURES AND OPTIONS SEGMENT: Circular No. 029
"Stability itself is nothing else than a more sluggish motion." - Michel de Montaigne.
PAST WEEK:: Owing to expiry, there were wild moves on both sides. Since largest Open Interest was centered around 5200, Nifty hovered and closed pretty much near it. After trading in a very narrow range in the last week, it closed pretty much where it left the previous week. This shows the tug of war between bulls and bears. Neither sure which way to trade at the end of the day/week.
NEXT WEEK:: A clear indecisiveness has been seen in weekly nifty chart also, probably for expiry week. We may get more clarity in the coming week(s). It is difficult to state which direction market will head next week. It closed above the 5 DMA and 20 DMA levels and RSI around 80, indicating that the market is looking extremely volatile ahead. As usual, 5200 will act as the strong support for the markets in the short term in case of weakness in the markets and traders need not worry as long as 5200 is sustained on closing basis.
NIFTY TRADERS GET CAUTION ABOVE 5288 LEVEL.
GLOBAL MARKETS ARE ALSO TRADING WITH CAUTION.
WE EXPECT A WIDE RANGE AND VOLATILE TRADING.
ALSO DON'T EXPECT SHARP CORRECTION IN NEXT WEEK.
BILLIONS ARE WAITING OUTSIDE TO COME INDIA FROM EUROPE. If you have already initiated a short position, trade with strict stoploss. Its not really a good idea to go long in the coming week since there is a chance of negative divergence developing up. It is better to wait until the dust settles down and nifty clearly indicates which way it is going to go. Yes, we may loose a few points early on, but there will be lot more that we can catch with more confidence. If we are unable to break above BB center line in the coming week, one can accumulate short positions as we go forward.
03.05.2010 (MONDAY):: Nifty May 2010 futures were at 5260.50 (5262.80 at closing session), at a discount of 17.50 points to spot closing of 5,278. Turnover in NSE F&O segment was Rs 58,815.19 crore, sharply lower than Rs 1,25,435.85 crore on Thursday, 29 April 2010.
NIFTY IN A CONSOLIDATION PHASE ……………….
Nifty Futures opened flat to higher by approx 10 points @ 5264 on Friday. It swiftly moved higher towards 5290 making the same as an intraday high, but found resistance at this mark and could not pass by the 5300 level. Nifty futures traded the whole session in a narrow range of 25 points and finally slipped towards the intraday low of 5252 and closing the lackluster session @ 5260.
Nifty futures is trading at an important level of 5250 waiting for fresh cues to move the markets. The immediate important level to watch for are 5200 and thereafter at 5150 on the down side. The levels to watch for on upside are at 5300 and thereafter @ 5350. Nifty futures seems to be stuck in a narrow range of 5200 – 5350 zone from last couple of sessions. SO WE MAY ASSUME THAT NEXT WEEK ALSO, WE MAY SEE THE RANGE OF 5180-5300.
A close on either side of the range will move the Nifty futures by 200 points.
EXPECTED RANGE FOR MONDAY : 5201-5314
RESISTANCE .. 5268/5298/5316
SUPPORTS ...... 5225/5200
TRADING IDEA:: THE OPEN INTEREST IN THE RELIANCE 1100CA INCREASED BY 19% ON FRIDAY AND THAT OF RNRL 90CA BY 39.50%. It looks like the big sharks have adopted the following strategy: Buy Reliance 1100CA and buy RNRL 90CA. This would be the perfect hedge for the judgment ahead. If Reliance wins, then the 1100 will score well. If RNRL gets the decision in their favor, then the 90CA will go vertically north. The strategy seems to be on fairly rational ground. The combined investment for buying 1 lot of each will be around 10,000 and the profits if the decision does come through (provided Europe as well as Goldman don’t gatecrash into the party), would be quite more than reasonable. So, once the judgment comes in, ride the favorable option and immediately discard the other one.
FUTURES:: Sell Nifty future below 5260 with a stoploss of 5271 for a target 5225 and 5205
OPTIONS:: Buy 5200 PE around 80-81 with a strict stoploss of 74 for a target 100 and 112
STOCKS:: Buy GSPL only above 96.60 with stoploss of 94.90 for a target of 98, 100.55 and 103. Sell Educomp around 690 with stoploss of 700 for a target of 675, 660 and 651
Disclaimer:: Intraday trading is very risky. It may goes against you. Traders are advised to trade as per their risk taking apetite.
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett
