Update for 24th February 2011

  The Derivative Expiry is Here !

• Following the negative cues from the international markets due to the Arab world unrest and the galloping crude oil prices,  Nifty futures opened slightly lower on Wednesday.
• We had indicated in the last post that Nifty future is trading in the no-man's-land and a failure to test the upper resistances may force it to test the lower supports.
• It was also indicated that the open interest data of February series Nifty options is placed in such a manner that the preferred expiry area as far as the options writers are concerned is between the 5400 and 5500 strikes.
• And it seems that the trading range of Wednesday has remained inside( or rather kept ) the indicated preferred range of the options sellers. However, it is too early to say that the expiry may happen in the the 5400 - 5500 range due to the worsening macro-economic factors due to the rising crude prices.

   Nifty Futures - Intra-day Chart    

      Nifty Futures  - Daily Chart 

Update for 23rd February 2011

 Nifty is Still in the No Man's land ?

• Nifty futures opened lower on Tuesday due to the all round losses in Asian markets on the back of the rising crude prices . 
• Nifty contracts recorded an intraday low of 4456 in the morning session before trying to test the previous day's last traded price / closing price. 
• However, this test ended at 5520 thereby leaving a subtle gap between Tuesday's high and Monday's last traded price / closing price. 
• These subtle gaps, especially when such gaps occur near the top of intermediate rallies, may indicate weakness on the following days. ( However, such gaps might not have much effects in a sideways moving market. )
• Nifty futures recorded a fresh intraday low of 5428 in the afternoon session before recovering to close at 5476. 

   Nifty Futures - Intra-day Chart   

      Nifty Futures  - Daily Chart