The double whammy of shorts rollover and FIIs’ falling long positions amidst a slew of key events including the Reserve Bank of India's monetary policy meeting, the MSCI rejig and July-September earnings paints the picture of a volatile October for Nifty.
Traders who use a stop loss may not lose much money since their losses are kept to a minimum, while those who don't use stop loss, can lose a lot of money.
On July 5, 2021, at the time of market opening, a trading member’s dealer placed a manual buy order for Nifty near month future at a price that was significantly higher than the prevailing price in the market.
"Nifty futures turns 21 today. Nifty has been a big part of my life. I must have said Nifty more than any other word and looked at Nifty charts more than any other pic," Zerodha CEO Nithin Kamath said.
Rollover in Nifty stood at 78.93 percent, which is higher than its quarterly average of 69.70 percent.
The open interest (OI) activity all the while, when Nifty was rising, did not seem to have agreed with the argument of everything is fine, unlike the price action.
Gold entered in trending wave, which could last up to $1700 in the coming few months and Dollar index is trading above 98, indicating at money is flowing into safe heavens.
The two-third of the stocks from derivatives segment saw decent selling pressure in June series, which does not bode well for the bulls.
Viju Cherian gets in conversation with Gaurav Choudhury and Kshitij Anand to discuss the exit polls and how the markets have reacted to it.
Some cool off in India VIX could be expected after the political outcome becomes apparent.
Every now and then we are faced with a situation where there is a firm possibility of headwinds created by a known event. Be it election outcomes, big trade agreements or major Monetary Regime change.
Analysts’ suggest investors to buy put options if the market opens lower on Monday to hedge their long positions while some are advising clients to remain in cash at least for the next 3-4 days
The outcome of State election results might lead to uncertainty cropping up in the next 10 sessions which could result in the rise in open interest.
The Nifty Futures open| interest (OI) tends to build up prior to the Budget and declines once the event is out of the way. Given that the derivative indicators like the Basis, OI PCR and IV tend to mirror the movements in the Nifty rather than be impacted by the Budget event.
According to a report by Dynamic Levels, Nifty Futures is expected to open at 7969 as per SGX Nifty at 8:30 am IST, which is 45 points below its previous close of 8014.
F&O cues: Nifty futures shed 1 percent in open interest (OI), sheds 1.8 lakh shares and Nifty Bank September futures shed 1 percent in OI.
SP Tulsian of sptulsian.com in an interview to CNBC-TV18 spoke about the fundamentals of stocks and sectors like power, steel, automobiles, with special focus on Jindal Steel & Power and Bharat Bijlee, and quarterly earnings of Maruti Suzuki.
The index, that opened at 1461, has moved nearly 5.5 times in the past 15 years. It has rewarded its investors with 12 percent returns.
According to Deven Choksey, KR Choksey Shares & Securities Nifty will consolidate in 8200-8700 range and if it breaches those levels then 9000-9200 on the upside is likely.
Nirmal Jain, Chairman of IIFL does not see Nifty breaching 7,950 - 8,000 levels, as investors are looking at every correction as an opportunity to buy.
The Nifty is starting the January series with more than 20.8 million shares along with the highest ever seen roll spread of 103 points. Higher Nifty premium does not bode well for upside momentum. Hence, future premium is likely to come down to normal levels in the next couple of sessions, says ICICIdirect.com
ICICIdirect.com has recommended to sell Nifty in the range of 8611-8616. However, advised to buy buy Bank Nifty in the range of 18700-18740, in its report dated December 8, 2014.
One can trade the September series with a positive bias and advised buying Options because the 8200-8300 Call Options are attracting lot of buying interest from stronger hands, said Siddharth Bhamre of Angel Broking
F&O cues: Nifty Put added 33.2 lakh shares and Call added 16.5 lakh shares in open interest.
F&O Cues: Nifty 6300 Call shed 4.8 lakh shares in Open Interest while Nifty 6300 Put added 7.6 lakh shares in Open Interest on December 23.