Category Archives: Future & Option

Understanding the Advantages of Futures & Options Investment

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Investing in futures & options are unheard of, yet their presence in an investment portfolio is vital in a growing economy.

What is future & option?

These two economic terms seem to be unfamiliar to a small-time businessman. In corporate world, futures markets serve as baselines for pricing products for both retail and wholesale that include basic commodities such as rice, corn, wheat , barley, oats, and animal feeds; crude, oil and gasoline; hardware, lumber and construction materials. The prices of goods and commodities in retails stores, convenience stores and supermarkets are based on this trend.

Options markets are financial instruments that allow the buyer to exercise his rights to buy or sell the so-called underlying assets at a price set before it is released in the market. An option becomes a binding agreement with corresponding terms and conditions that the buyer strictly follows. However, with options, the buyer is not bound to any obligation. When one asks what is future & option, the answer is simple: they are investment markets that have their own risks and benefits.

How to invest in F&O?

Wise traders would prefer to invest in F & O because the return on investment is really high despite the fact that there is an expiration date to this type of investment. During the expiration period, the trader would close and reopen new positions for an extended expiry dates. Commodities that are affected by market volatility are gold, animal feeds, bonds, gas, crude and oil, stocks and bonds. Before investing in future and option, the trader must have knowledge that both contracts have each underlying assets such as index, commodities, and stocks. How to invest in F&O is the foremost question that comes to mind for every trader. Take a peek at some F & O tips for guidance. Become aware of the some F & O tips to guide them.

F and Os both expire at a certain date.

F and Os are both leveraged financial instruments that are subject to risk because of market volatility.

Traders should know how to manage their money and use strategy to avoid financial risks and handle diversification smoothly.

Become familiar with future and option terminology.

Follow market trend as an effective strategy by recognizing patterns, become familiar with the market environment and become analytical when it comes to technical and statistical aspects of the market.

Benefits of F&O investment

Investing in F & O should be carefully planned to avoid loopholes. Like any other type of investments, Futures & options have its own risks and benefits. Here are the benefits of F & O investment:

F and Os protect traders of their investments.

They help manage financial risks.

They protect traders from market volatility and price changes.

They help traders to profit from different financial instruments.

They help small to medium-scale entrepreneurs to increase their revenue amidst market instability.

F & O are effective tools to allow small-time investors to have wide market exposure, giving them the experience for big investments.

To Know more about Futures & Options visit, http://profitkrishna.com/our-services.aspx

Conclusion

The benefits of F & O investments are great. We cannot deny that prices of commodities fluctuate because of market instability and inflation rate. A pragmatic investor should follow the F & O tips in order for them to survive in market competition and save their money from wastage because of wrong investments.

 

Investment Options to Look Out for Earnings after Retirement

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Retirement is the phase of life where everyone plans to spend quality time free of worries and responsibilities. Income during this phase of life is something which bothers the retired individuals. Today there are various investment options which can be of great help for the senior citizens to earn after retirement. These include options like stock trading, commodity trading, investment in mutual fund, ETF investment, trading through future & options and much more.

Stock Market Investment

Stocks can be a great way of making money after retirement. They can be traded online from the comfort of home and therefore are convenient modes of earning money. When planned properly with wits and good know-how of the stock trading, stock market investment can give good returns to support living past retirement. Stocks are nothing but the shares of an organization. When you invest in stocks, this means that you are buying the shares or a portion of ownership in the specific organization. One of the best strategies for stock trading is to buy them when the prices are low and wait patiently till the market value of the stocks grow. Visit http://www.profitkrishna.com/ for latest stock market tips and advisory services on stock trading.

Profitkrishna-investment-for-retirement-INFOGRAPHMutual Fund

Mutual funds are typically a group of funds collected from number of investors. In mutual funds the investors are investing in securities such as stocks, bonds, money market instruments and similar assets. Investment in mutual funds can give even the investors with smaller put-in capabilities, access to professionally managed and diversified portfolios of equities, bonds and other securities with a small amount of capital.

Future & Option Trading

F&O trading is a good investment option for the investors with a good understanding of stock markets. Future is a type of contract to buy or sell a asset at price fixed and at a certain future date while the options trading is a right of the buyer to buy or sell the underlying asset at a fixed price up to a certain date called options expiry date. Option trading allows the trader to invest with a low capital and great flexibility for investing in assets. With appropriate strategy one can plan for higher returns from investment in future & options trading.

ETF

ETF or Exchange Traded Funds are the exchange trade products represent assets like stocks, commodities and bonds that track an index. ETFs need to be traded close to their net value over the course of the trading day. They are incur lower management and administrative expenses and are considered the cheapest investment products one can opt for investment after retirement for good returns at minimum possible investment.

Forex Trading

Forex trading is much cheaper than stock trading and a good option for those looking for economical investments. It gives the traders the ability to trade on margin and a chance to earn profits at smaller investments. Even with lesser amount one can easily open an account and start trading in forex which is not possible with other investment options. Therefore if you are planning for an investment with smaller amounts after retirement, forex trading can be a good option for consideration.

Conclusion:

Therefore by selecting an appropriate investment one can easily get plan for earnings after the retirement.

This article educates reader about various investment options one can look out for earnings after retirement.

Brief About Commodity Market

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CommoditiesCommodity trade market has been significantly improved in India after liberalization in 1991. This has given boost to both physical and derivatives commodity market. The well established structured commodity market have boosted the commodity production as well minimize the pricing fluctuation risk of commodities. It has greatly facilitated multi-commodity exchange also.

Commodity Market

It is a market like others to trade commodity. In India it is categorized as physical commodity market and Derivatives market.

Physical Commodity Market

This market is also known as cash market or spot market because the commodities are sold for cash with immediate delivery. This delivery based transactions involve the active traders, brokers and mediators. It is a direct commodity market where producer and buyer interact directly. Physical commodity transaction involves the risk factors like high volatility.

Derivatives Commodity Market

The contract based commodity transactions is happened in derivative market. The commodity prices are set and executed on confirmed future date for delivery and payment. It is a best method to protect the investor against volatile commodity prices.

The wide array of commodities transactions are executed including gold, silver, copper, menthe oil, crude oil, aluminium, iron ore, coal, coffee beans, wheat etc.

Commodity markets roll out on futures, swaps forward options and other derivatives.

Prospects of Commodity Market

Commodity markets are existed in the world from ancient time. In past, all transactions for livings were the part of commodity exchanges as per the world history.

The substantial growth of commodity market and transactions are based on two factors-

  1. Liberalization of capital and commodity market adopted by the country
  2. Effective implementations of financial intermediaries to promote derivatives.

India have initialized the process with establishing many commodity exchanges across the country including three multi commodity exchanges (MCX) for national level and national commodity and derivatives exchange Limited (NCDEX)

The system of forwards/future trading is controlled at three levels by Government of India, forward market commission and commodity exchanges. Their collaborative efforts are to create the market integrity, financial integrity, transparency in commodity prices and protect the customer interests.

Commodity Derivatives

There are commodity derivatives as below-

Forwards – It is a contract between the parties to exchange the commodity at a set price on particular date confirmed today.

This contract is unique and over the counter for fixed size, expiry data and the type of asset.

Futures – It is a standard contract between purchaser and seller, who affirmed the terms and conditions of commodity exchange at a defined future date. It is a part of organized exchange for future execution.

Options – It is a contract that gives option to second party if he/she doesn’t want to execute. Thus is becomes a non obligatory responsibility for second party at specific terms. In such case to make the first party rightful to gain the different between the strike price and commodity market price, if the commodity market price is higher than the strike price.

Swap – It is a two party’s agreement to exchange sequence of cash flow for particular time duration. Commodity Swap is an exchange obligation where not required physical delivery of commodities.

Here it tries to give brief information about what is the commodity market and types of commodity market along with the types of commodity derivatives, future & option and how commodity exchanges takes place in the market by Commodity Advisory Service Provider that provides the best commodity tips to turn out your commodity investment in profit.

Nifty Trading Tips & Foreign Institutional Investors Derivative Data – 30 October’2012

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The Bse Index Shuts at 18636 up 11 points from its Previous Close or +0.06%. The Nse Index Shuts at 5666 up 2 Points from its Previous Close or +0.02%.

On End of Day Chart Nifty Still below weekly average and now Nifty Month average is at 5595 and then three months average at 5430. Indicators or still on Selling Side.

  • RBI macro view on Indian Economy was out today and the most important take away was, Monetary policy needs to be cautious in the interim, focusing on inflation while using the available space to support growth to the degree it can, It indicates interest rates are likely to go down but will it be tomorrow as Festival gift, obscurity will be determined by tomorrow 11 AM.

FII Derivative Data:

  • Foreign Institutional Investors sold 4589 Contracts of Index Future, worth 120 cores with net OI decreasing by 7175 contracts.
  • Nifty Future was up by 3 points and Open Interest in Index Futures decreased by 7175, so Foreign Institutional Investors again liquidated longs which were rollover from October series. Nifty formed a doji candle pattern which is signaling indecision with regards to the trend of Nifty ahead of tomorrow’s key event of RBI’s mid quarterly policy review.
  • Nifty Spot closed at 5666 after making a high of 5698 and low of 5645.Nifty spot again was unable to break 5725 and 5638 so still trading within the range of 5635-5725.Tomorrow event RBI can again push Nifty to higher end of range, Nifty is expected to make volatile moves 15 mins before the news come out
  • Resistance for Nifty has come up to 5698 and 5725 which needs to be watched closely ,Support now exists at 5651 and 5635 .Trend is Sell on Rise till 5725 is not broken on closing basis.
  • Nifty Future November Open Interest is at 1.78 cores with liquidation of 1.6lakh in OI, long liquidation in Nifty. Only concern is 40 points premium is Nifty Future which denotes extreme level of Bullishness in market participants so caution is advised in long positions.
  • Total F&O turnover was at 0.77 lakh Cores with total contract traded at 1.49 lakh, PCR at 0.89 and VIX at 15.12.Cash market Volume were low as compared to Friday suggesting lack of participation of investors/traders ahead of the key economic event.
  • 5900 Call is having highest Open Interest of 42 Lakhs with addition of 4.4 lakhs in OI, 5800 Call added 4.6 lakhs in OI with net OI at 38 Lakhs. 5400-6000 Call added 18.7 lakhs in OI
  • 5600 Put is having highest Open Interest of 44 lakhs so 5600 is strong base for Nifty from start of November series. 5400 PE again added 7 lakhs in OI, Thus 18 lakhs OI added in 2 days with average premium of Rs 16. FII were net buyers in Options worth 1172 cores and looking at data it suggests they have bought equal amount of Calls and Puts suggesting volatile session ahead 5400-6000 Put added 18 lakhs in OI. Rupee loses 52 paise to slip below 54-mark ahead of RBI meet.
  • Nifty Futures Trend Deciding level is 5677(For Intraday Traders), Trend Changer at 5716 Nifty (For Positional Traders).
  • 5 DMA at 5689
  • 20 DMA at 5695
  • 50 DMA at 5538
  • 200 DMA at 5272
  • 5 Days Relative Strengthen Index at 41 and 14 Days Relative Strengthen Index at 53 Indicates Nifty in Neutral Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5688 and above the level marks the track point at 5711 later zipper levels at 5755 marks.

Nifty Support at It has the First support close to the level 5644 and below the level marks the track point at 5622 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 30 Oct’2012:

Buy above 5711 sl 5688 Tgt 5733-5755 {Or} Sell Below 5688 sl 5711 Tgt 5666-5644

Bank Nifty Future Momentum Call for 30 Oct’2012:

Buy Above 11622 sl 11577 Tgt 11666-11711 {Or} Sell Below 11533 sl 11577 Tgt 11488-11400

Nifty Future Tips & FII Derivative Data – 25 October’2012

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The Bse Index Shuts at 18711 down 84 points from its Previous Close or -0.44%. The Nse Index Shuts at 5692 down 26 Points from its Previous Close or -0.45%.

  • As per Indicators side Relative Strength Index& Commodity Channel Index indicating both bullish. While Moving Average Convergence-Divergence is still holding sell signal.

FII Derivative Data:

  • FII bought 810 Contracts of Index Future, worth 87.97 cores with net OI increasing by 17458 contracts.
  • Nifty Future was down by 30 points and Open Interest in Index Futures increased by 17458, so FII covered longs and initiated fresh shorts in Nifty Future and Bank Nifty. October Series has been a non event series in terms of Nifty performance as per Tuesday close nifty was up 42 points in 17 trading sessions of October series.
  • Nifty Spot closed at 5691 after making a high of 5721 and low of 5681.Nifty spot again was unable to break 5725 and 5638 so still trading within the range of 5635-5725. It has been 10 days of consolidation in this range and has been a very frustrating range to traders. Best is to stay on sidelines till this range breakout/breakdown gets resolved. Now the Bollinger band on Daily charts has squeezed so a fast move is round the corner, most probably in November series.
  • Resistance for Nifty has come up to 5725 and 5741 which needs to be watched closely ,Support now exists at 5690 and 5676 .Trend is Sell on Rise till 5725 is not broken on closing basis.
  • Nifty Future October Open Interest is at 1.39 cores with liquidation of 57 Lakh in OI, long liquidation in Nifty Future. Rollovers have started in Nifty Future and 63 lakhs got rollover from October Series.
  • F&O turnover was at 1.60 lakh Cores with total contract traded at 2.83 lakh, PCR at 0.95 and VIX at 13.71.
  • 5800 CE is having highest Open Interest of 1.08 Core with liquidation of 8.6, 5700 CE sheded 7.5 lakhs in OI after Bulls were unable to close nifty above 5700. So fight will be at 5700 CE and PE tomorrow.
  • 5600 PE is having highest Open Interest of 73 lakhs so 5600 is strong base for Nifty. 5700 PE shedded 13 lakhs now interesting battle lies at 5700 CE and PE combined premium of both comes at Rs 44. Best case for Operators and Big money will be to keep Nifty oscillating between 5680-5720 so that whole premium can be eaten before 3 PM than give a one sided move.
  • FII bought 252 cores and DII sold 299 cores in cash segment, INR closed at at 53.67. FII sold 367 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5722 (For Intraday Traders), Trend Changer at 5719 Nifty (For Positional Traders)
  • 5 DMA at 5694
  • 20 DMA at 5695
  • 50 DMA at 5517
  • 200 DMA at 5258
  • 5 Days Relative Strengthen Index at 50 and 14 Days Relative Strengthen Index at 56 Indicates Nifty in Bullish Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5711 and above the level marks the track point at 5733 later zipper levels at 5755 marks.

Nifty Support at It has the First support close to the level 5688 and below the level marks the track point at 5644 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 25 Oct’2012:

Nifty Future Tips – Buy above 5711 sl 5688 Tgt 5733-5755 {Or} Sell Below 5688 sl 5711 Tgt 5666-5644

Bank Nifty Future Momentum Call for 25 Oct’2012:

Buy Above 11622 sl 11577 Tgt 11666-11711 {Or} Sell Below 11577 sl 11622 Tgt 11488-11400

Nifty out Look & FII Derivative Data – 12 October’2012

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The Bse Index Shuts at 18805 up 174 points from its Previous Close or +0.93%. The Nse Index Shuts at 5709 up 56 Points from its Previous Close or +0.99%.

Infy Results before Market Opening & Hdfc after Market Hours & IIP data at 11.00 A.M

  • Seeing as tomorrow is a significant day with the start of the Results Season getting kicked off by the bell weather Infy it is likely to garner a lot of interest and significance since this result is likely to define the performance of the Corporate Sector for the Q2 of 12-13 which has largely been bearish when compared with the last year due to the higher interest costs and slackening Economic Growth.
  • The charts are indicating that the Markets are likely to remain volatile during the current Results seasons with the Indices facing severe resistance at the higher side which is 5730-5770 and it attains significance since these mentioned levels have not been breached during the last few sessions and the Indices dropped on account of profit booking to the 5650-5500 levels as well.

FII Derivative Data:

  • FII sold 1727 Contracts of Index Future, worth 125.81 cores with net OI increasing by 39437 contracts.
  • Nifty Future was up up by 66 points and Open Interest in Index Futures increased by 39437,so  FII have created fresh longs   in Nifty and Bank Nifty Futures.
  • Nifty Spot closed at 5708 after making a low of 5637 and not breaking our Sell area of 5632 as given yesterday we got a 66 points rally today.  Nifty daily chart is forming a Head and Shoulder pattern we are in process of forming a Right Shoulder now so if 5815 is not breached and 5630 gets broken in coming week lower levels are quiet possible.
  • Resistance for Nifty has come up to 5728 and 5752 which needs to be watched closely ,Support now exists at 5688 and 56661 .Trend is Buy on Dips  till 5688 is not broken on closing basis.
  • Nifty Future October Open Interest is at 2.53 cores with unwinding of 2.3 Lakh in OI,shorts did profit booking in Nifty future .
  • Future & Option turnover was at 1.38 lakh Cores with total contract traded at 2.50 lakh,  PCR at 0.96 and VIX  at 16.49.Volumes have been on decline from past 3 days which is a silver lining for bulls as traders are not unwinding positions and dips can be used to make a base for sustainable rally. Discussion became reality today
  • 5800 Call is having highest Open Interest of 83 lakhs with fresh addition of 6.2 lakhs in OI and Premium at 42.5900 CE Open Interest at 83 with net addition of 5.74 lakhs in OI so speculative or smart money is buying 5900 Call at premium of rs 16, and 5700 Call also unwounded 5.2 lakh in OI as bulls captured 5700 again .5400-6100 CE unwounded 2.2 lakhs in Open Interest.
  • 5600 Put is having highest Open Interest of 70 lakhs with addition of  6.39 lakhs in OI and premium at 23,5700 PE showed added of 3.7 lakhs .5400-6100 Put  unwounded  2.4 lakhs in Open Interest. So it seems rally is on back of short covering only.
  • FII bought 1043.41 cores and DII sold 573.72 cores in cash segment, INR closed at at 52.75. FII sold 311 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5695 (For Intraday Traders), Trend Changer at 5738 (For Positional Traders)
  • 5 DMA at 5698
  • 20 DMA at 5649
  • 50 DMA at 5448
  • 200 DMA at 5218
  • 5 Days Relative Strengthen Index at 54 and 14 Days Relative Strengthen Index at 61 Indicates Nifty placed in BULLISH Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5711 and above the level marks the track point at 5755 later zipper levels at 5777 marks.

Nifty Support at It has the First support close to the level 5688 and below the level marks the track point at 5666 later zipper levels at 5644 marks.

Nifty Future Momentum Call for 12 Oct’2012:

Buy above 5755 sl 5733 Tgt 5775-5800 {Or} Sell Below 5711 sl 5733 Tgt 5688-5666

Bank Nifty Future Momentum Call for 12 Oct’2012:

Buy Above 11600 sl 11555 Tgt 11640-11690 {Or} Sell Nifty Future Below 11510 sl 11555 Tgt 11470-11420

Nifty Day Chart & FII Activity – Nifty Future, Nifty Spot, F&O Tips for 11 October 2012

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The Bse Index Shuts at 18632 down 163 points from its Previous Close or -0.86%. The Nse Index Shuts at 5653 down 53 Points from its Previous Close or -0.92%.

  • Scheduled end of the day chart Nifty closes below weekly average and heading towards monthly average of 5580. On daily chart rsi-macd-cci all given sell signals. Nifty below 5580 next term short support at 5415.

FII Derivative Data:

  • FII sold 34232 Contracts of Index Future, worth 1012.37 cores with net OI decreasing by 20284 contracts.
  • Nifty Future was down by 51 points and Open Interest in Index Futures decreased by 20284,so FII have booked profits in shorts  in Nifty and Bank Nifty Futures. Fresh longs have not been created as nifty is moving in sideways zone after big rally from 5200-5800.
  • Nifty Spot closed at 5653 after making a low of 5648 and filling the gap from 5650-5683, The correction which is ongoing is 4 days old and looking at past 2 correction of 316 points (5349-5033) which took 13 days and 233 points (5449-5216) which took 10 days, current ongoing correction has done 167 points in 4 days so if 5630 does not hold on closing basis we can expect correction to continue with brief pullback rallies.
  • Gap filling of 5650-5683 has started and gap of 5650 did not got filled today, but should be filled in this week as per gap theory. This is what we discussed yesterday and Nifty filled the gap today.
  • Resistance for Nifty has come up to 5685 and 5700 which needs to be watched closely ,Support now exists at 5620 and 5600 .Trend is Sell on Rise till 5684 is not broken on closing basis.
  • Nifty Future October Open Interest is at 2.56 cores with unwinding of 6.9 Lakh in OI, shorts did profit booking in Nifty future.
  • F&O turnover was at 1.17 lakh Cores with total contract traded at 2.22 lakh, PCR at 0.94 and VIX at 16.83, VIX is also trading at its lower end of range and a up move till 18.5-19 is on cards. Volumes have been on decline from past 3 days which is a silver lining for bulls as traders are not unwinding positions and dips can be used to make a base for sustainable rally.
  • Nifty 5800 CALL is having highest Open Interest of 76 lakhs with fresh addition of 3.6 lakhs in OI and Premium at 25.5900 Call Open Interest at 77 with net addition of 8 lakhs in OI so speculative or smart money is buying 5900 Call at premium of rs 10, and 5700 Call also added huge 13 lakh in OI so bears are trying to make ceiling of market at 5700 for short term .5400-6100 Call added huge 32 lakhs in Open Interest.
  • Nifty 5500 PUT is having highest Open Interest of 65 lakhs with addition of  5.17 lakhs in OI and premium at 18,5700 Put showed an unwinding of 4 lakhs and 5600 PE saw a marginal unwinding of 0.35 lajhs.5400-6100 Put  added 5 lakhs in Open Interest.
  • FII bought 407.6 cores and DII sold 396 cores in cash segment, INR closed at at 53.06. FII sold 424 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5680 (For Intraday Traders), Trend Changer at 5742.
  • 5 DMA at 5729
  • 20 DMA at 5633
  • 50 DMA at 5436
  • 200 DMA at 5214
  • 5 Days Relative Strengthen Index at 39 and 14 Days Relative Strengthen Index at 57 Indicates Nifty placed in BULLISH Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5666 and above the level marks the track point at 5688 later zipper levels at 5711 marks.

Nifty Support at It has the First support close to the level 5644 and below the level marks the track point at 5622 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 11 Oct’2012:

Buy above 5688 sl 5666 Tgt 5711-5733 {Or} Sell Below 5666 sl 5688 Tgt 5644-5622

Bank Nifty Future Momentum Call for 11 Oct’2012:

Buy Above 11380 sl 11333 Tgt 11422-11466 {Or} Sell Below 11330 sl 11380 Tgt 11288-11244

Nifty Stock Index & FII Derivative Market Data – 03 October’2012

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The Bse Index Shuts at 18,824 up 62 points from its Previous Close or +0.33%. The Nse Index Shuts at 5719 up +16 Points from its Previous Close or +0.27%.

  • Top Nse Gainers were: JPASSOSIAT, AMBUJACEM, RELINFRA and INFY.
  • Top Nse Losers Were: DLF, BANKBARODA, BAJAJ-AUTO and PNB.

FII Derivative Data:

  • FII bought 3255 Contracts of Index Future, worth 94 cores with net OI increasing by 6544 contracts. SGX Nifty is trading at 5791 so another gap up on cards.
  • Nifty Future was up by 25 points and Open Interest in Index Futures increased by 6544,so  FII have initiated longs  in  Index Future longs in Nifty and Bank Nifty Futures.
  • Nifty Spot closed at 5719 after making a high of 5722 and unable to break 5740, Bulls are in control of market as they have closed nifty above 5700 on closing basis. Nifty has formed a double bottom at 5640 and it’s a bullish pattern, and we have seen a follow up action in past two trading session.
  • Resistance for Nifty has come up to 5740 and 5775 which needs to be watched closely ,Support now exists at 5700 and 5683 .Trend is Buy on Dips till 5636 is not broken on closing basis.
  • Nifty Future October Open Interest is at 2.42 cores with a addition of 6 Lakh in OI, longs got added in Nifty future. Rollovers range for NF comes at 5732-5670 and we have closed above the rollover range.
  • Overall F&O turnover was at 0.67 lakh Cores with total contract traded at new 52 week low of 1.2 lakh. PCR at 0.92 and VIX  at 16.34
  • Nifty 6000 CE  is having highest Open Interest of 52 lakhs with fresh addition of 6.4 lakhs in OI.5800 CE Open Interest at 49 is second highest  lakhs, with fresh addition of 7.2 lakhs. Nifty 5300-6000 CE added just 16.4 lakhs in Open Interest.
  • Nifty 5300 PE is having highest Open Interest of 50 lakhs with fresh addition of 0.83 lakhs in OI, Bulls want to make  5300 as base for October Series.5600 PE added 6.6 lakhs in OI so 5600 is the strong base emerging as per OI table. We need to watch closely the Open Interest in 5700 PE tomorrow opening  as of now OI is at 40 lakhs and if we can see an addition of 10-15 lakhs tomorrow we must be heading upwards , 5300-6000 PE added 21 lakhs in Open Interest.
  • FII bought 207.51 cores and DII sold 407.20 cores in cash segment, INR closed at at 53.7 FII sold 299 crores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5741(For Intraday Traders), Trend Changer at 5725 Nifty Future (For Positional Traders)
  • 5 DMA at 5682
  • 20 DMA at 5503
  • 50 DMA at 5367
  • 200 DMA at 5182
  • 5 Days Relative Strengthen Index at 78 and 14 Days Relative Strengthen Index at 73. Indicates Nifty placed in BULLISH Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5733 and above the level marks the track point at 5755 later zipper levels at 5799 marks.

Support at It has the first support close to the level of 5688 and below this level mark next support is seen at 5666 later dipping levels near 5644 marks.

Nifty Future Momentum Call for 03 Oct’2012:

Buy above 5777 sl 5755 Tgt 5799-5822 {Or} Sell Below 5733 sl 5755 Tgt 5711-5688

Bank Nifty Future Momentum Call for 03 Oct’2012:

Buy above 11555 sl 11511 Tgt 11600-11644 {Or} Sell below 11466 sl 11511 Tgt 11422-11377.

Nifty out Look & FII Derivative Data – 21 September’2012

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The Bse Index Shuts at 18,350 down – 147 Points from its Previous Close or -0.79%. The Nse Index Shuts at 5555 down by -46 Points from its Previous Close or -0.82%.

  • Top Nse India Gainers were: M&M Fin Services, Hind Petrol, Sjvn Ltd and Indian Bulls Real Estate.
  • Top Nse India Losers Were: Ttk Prestige, Gmr Infra, Lanco Infra and Jay Prakash Power.
  • Technical correction is in place giving the breathing space to indicator and cooling off the steam of stocks. Consolidation before the next rally will help market to break the swing high of 5652 and March towards 5740. Expiry is just 5 days ahead.

FII Derivative Data:

  • FII sold 5957 Contracts of Index Future, worth 102.69 cores  with net OI decreasing by 33817 contracts.
  • As Nifty Future was down by 41 points and Open Interest in Index Futures decreased by 33817, FII have done profit booking in shorts which they created on Tuesday and coupled with profit booking in longs in Nifty and Bank Nifty Future.
  • Nifty Spot closed at 5554.25, after opening gap down making low of 5537 near our support of 5527 as mentioned, rest of day was consolidating in the range of 5581-5550.As we have said before Consolidation will be name of game for few days and same is happening in market We also have a small gap from 5581-5600 which will be filled eventually.
  • Resistance for Nifty has come up to 5581 and 5602 which needs to be watched closely ,Support now exists at 5537 and 5520 .Trend is Buy on Dips till 5485 is not broken on closing basis.
  • Nifty Future September Open Interest is at 2.18 cores with a fresh addition of 2.4 Lakh in OI, shorts addition is seen in Nifty future.
  • Total F&O turnover was 1.26 lakh Cores with total contract traded at 1.93 lakh. PCR at 1.17 and VIX jumped to 18.62.
  • 5700 CE  is having highest Open Interest of 73 lakhs with addition of 2.5 lakhs in OI Calls were written at 5700 as premium came down from 21 to 10 in single session. .5600 CE Open Interest at 69 lakhs, with addition of 6.3 lakhs. Immediate resistance is at 5600 as per Open Interest table. 5200-5800 CE added 2.4 lakhs in Open Interest, Bears gaining some strength at higher levels.FII Options OI saw an reduction of 4.3 lakhs means big move is round the corner.
  • 5500 PE added 3.9 lakh in Open Interest total OI at 75 Lakhs, Bulls want to make  5500 as base for September Series.5600 PE saw an unwinding of 5.4 lakhs in Open Interest ,so puts written by bulls ran for cover today. 5200-5800 PE unwounded 8.8 lakhs in Open Interest bulls getting jittery at higher levels. Any close below 5554 on Nifty Spot will favor bears in extreme short term (This is what we discussed yesterday and todays close 5554.75
  • FII sold 73 cores and DII sold 331 cores in cash segment, INR closed at 54.38. FII sold 428 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5542, Trend Changer at 5405 Nifty. (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).
  • 5 DMA at 5555
  • 20 DMA at 5382
  • 50 DMA at 5306
  • 200 DMA at 5156
  • 5 Days Relative Strengthen Index at 68 and 14 Days Relative Strengthen Index at 67. Indicates Nifty placed in BULLISH Zone.

Nifty Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5577 and above the level marks the track point at 5600 later zipper levels at 5622 marks.

Support at It has the first support close to the level of 5533 and below this level mark next support is seen at 5511 later dipping levels near 5488 marks.

Nifty Future Momentum Call for 21 Sep’2012:

Buy above 5577 sl 5555 Tgt 5600-5622 {Or} Sell Below 5333 sl 5555 Tgt 5511-5488.

Bank Nifty Momentum Call for 21 Sep’2012:

Buy above 10977 sl 10933 Tgt 11066-11115 {Or} Sell below 10888 sl 110933 Tgt 10844-10800.

Nifty Future & FII Derivative Data – 13 September’2012

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  • Nifty Future made a fresh September series high today at 5453. IIP data came at 0.1 which is as per market expectation. Another important Global event German Court gave in favor of using ESM and Germany Can Ratify ESM Fund with Conditions so nothing is stopping Bulls. Always remember hot money chase the momentum and in liquidity driven rally fundamental will take the back seat. So do not waste your time in finding top and bottom, Stay with trend and mint money.
  • Top Nse India Gainers were: Tata Motors, LT, Jindal Steel and Tata Steel.
  • Top Nse India Losers Were: Siemens, Cipla, Ntpc and Bhel.

FII Derivative Data:

  • FII bought 18249 Contracts of Index Future, worth 437.39 cores  with net OI increasing by 13123 contracts.
  • As Nifty Future was up by 42 points and OI has increased by 13123, FII have imitated fresh long in Nifty and Bank Nifty Future. Momentum is on higher side and weakness is still not present in Nifty Future.
  • Nifty Spot closed at 5431 after making a high of 5436. Sensex has made a fresh 7 month high ie. 18012 so now its Nifty turn to break 5450.We have big gap from 5217-5309 formed on Friday and it’s been 5 days Bulls are able to defend the higher levels, Nifty continue to march higher after Monday consolidation. Also be noted Nifty has given highest close of 5331 on closing basis after it made the low of 4770
  • Resistance for Nifty has come up to 5450 and 5462 which needs to be watched closely ,Support now exists at 5424 and 5395 .Trend is Buy on Dips till 5339 is not broken on closing basis.
  • Nifty September OI is at 1.84 cores with a fresh addition of 5.5 Lakh in OI, long addition is seen in Nifty future.
  • Total F&O turnover was  1.16 lakh  Cores  with total contract traded at  2.18  lakh.PCR at 1.03 and VIX 15.03.Cash volumes show a jumped of 10% showing rise is backed by deliveries in Stocks.
  • 5600 CE  is having highest OI of 83 lakhs with an addition of 6 lakhs in OI.5500 CE is having second highest OI at  OI at 78  lakhs, Immediate resistance is at 5500 CE. 5000-5600 CE saw an unwinding of 2.6 lakhs in OI. So Bulls are all over the place.
  • 5300 PE added another 9 lakhs so 5300  and 5400 PE added huge 14 lakh, Bulls want to make the 5400 as base for the rest of September series.5000-5600 PE added  huge 29 lakhs in Open Interest so bulls are cementing ground for 5400 tomorrow. Now Bulls need to defend the 5400 base for rest of week.
  • FII bought 451 cores and DII sold 55.76 cores in cash segment, INR closed at 55.3. FII has bought 2ooo cores in cash market.
  • Nifty Futures Trend Deciding level is 5384, Trend Changer at 5324 NF. (Above this Level Bulls will rule Nifty/Below this levels Bears have upper hand).
  • 5 DMA at 5353
  • 20 DMA at 5341
  • 50 DMA at 5281
  • 200 DMA at 5138
  • 5 Days Relative Strengthen Index at 80 and 14 Days Relative Strengthen Index at 64. Indicates Nifty placed in BULLISH Zone.

Nifty Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5444 and above the level marks the track point at 5466 later zipper levels at 5488 marks.

Support at It has the first support close to the level of 5422 and below this level mark next support is seen at 5400 later dipping levels near 5377 marks.

Nifty Future Call for 13 Sep’2012:

Nifty Future Momentum Call – Buy above 5466 sl 5444 Tgt 5488-5511 {Or} Sell Below 5422 sl 5444 Tgt 5400-5377.

Bank Nifty Momentum Call for 13 Sep’2012:

Buy above 10266 sl 10222 Tgt 10311-10355 {Or} Sell below 10177 sl 10222 Tgt 10133-10088.