It was a lacklustre day of trading yesterday and early signs off the open this morning calls for another dull morning of trade at-least in the first half.
I've been doing a lot of background research for Vtrender2, particularly for our swing trading and positional requirements. I've noticed that Financials have been strong and the energy sector is a dip buy candidate. We have already taken a position in Reliance.
We'll carry this theme of sector rotation in Vtrender2, where within the sector, we look at the best candidate to take our position forward.So we get a win out of money moving in the sector as well as our technical analysis of the stock in that sector.
Vtrender 2 will be live from Monday-9th August and the subscription link will be on tonight.
Coming back to today's trade, let's look at an auction above yesterday 5443 to chase longs. Shorts have been ineffective, so we stay with the dominant trend which is actually side-ways, but borderline up.
Trade smart and quick.
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Wednesday, August 4, 2010
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32 comments:
Shai,
A question...your live audio-visual Vtrender 2, what would we need to communicate with you? Could you specify our requirement?
Good Morning Shai & friends.
GK,
Audio and video from me.
Live chat for all of us. No need to refresh. Also sound alerts for new comments by us. And of course a new website to track our positionals.
GM RM.
shai
banknifty values?
Prem,
BN- 10460-10442-1425
Nifty-5436-5430-5424
GM Shai and friends!
Have been busy with work -- but still find it hard to give up trading - talk abt addicts :)
http://3.bp.blogspot.com/_xQfPkpQXjMc/TFi9txqtZ6I/AAAAAAAAArg/TmQWCWGG6FA/s1600/OI_analysis.GIF
For last two days:
1. 5400PE OI increased by almost 21L. So 5400 is the first support (but can't say its a very strong support yet) with 68L puts vs 53L calls
2. 5500CE OI increased by 12L. So climbing 5500 would not be a very easy task.
3. Lower level puts keep getting added @5200, 5100, 5000 -- for hedging.
4. The pace of 5600CE addition has decreased -- after the 11L added on the Friday (22-16 price range), next two days has seen addition of only 5L addition (price range still 22-16).
Effectively last two days the big money options bets were that market will not fall below 5400 and will not rise above 5500.
One should be monitoring 5600CEs everyday because @the price of 22-16 rupees is not pricing in any sharp upswing that can come if Global cues are good.
Nifty Futures:
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3.02Cr OI up 9% -- We saw this in Banknifty last month -- Fairly big OI addition after several gap ups + small consolidation and then breakout. Will Nifty also follow the same path this month? But if Nifty stagnates and keeps adding more to OI, a fall of 150-200 points can cause lot long liquidation and lead to sharp correction.
Banknifty Futures:
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30.5L OI up 10% in last 2 days.
The Humongous OI is getting uncomfortable for me to digest. There sure is more room to run up and touch Banknifty all time high of 10700+ but with Big OI corrections can also be sharper.
Thanks Shai..
Girish,
Good inputs again.
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One note I wish to share about BankNifty, is the huge interest the counter is generating for trading.If you look at any daily chart, you will see volumes doubling and tripling once the exchange decided to halve the contract size in may.I feel OI will continue increasing as more and more people take positional exposure in that counter.
Shai,
Nothing to do with MP, but i feel Bank Nifty will end up trapping many.
sir
i could not enter in RIL yesterday can i buy now???
Dear Shai.
Is it posiible to add me in ur list to get subscribed for Vtrender2.
Thanks
Raj.
Hi Shai, Girish,
Any recommendations for stock futures for "Safe SHORTING" :-)
Hi Shai,
Is shorting of NF since below VAL ok?
Bose
Raj,
Surely. Refer to this link till we send an update : http://vtrender.blogspot.com/2010/07/vtrender-2.html.
Shai,
Didn't think about Banknifty OI from that perspective.
Given that Indian Banks are 100 times better than the virtually Zombie US banks - some long term players might have entered.
Banks like Yesbank are expecting 40% credit growth which will definitely reflect in topline growth and EPS -- and no wonder it has gone up 7 times from March 2009 bottom.
yes Sunil,
You can enter here.
Dear Shai,
ICICIBANK short@950.50 is it okay?, PLaning to carry positional, can you give MP values for this?
Girish,
Volume and OI go hand in hand. Both up means that trend is strong, rgdless of individual nos.
I agree with your assessment of indian banks. Scripts like sbi, hdfc, yes, icici are like jewels to long term investors.
ramsfm,
ICICI broke out above 933 level day before and to me it is a buy if we reach that point again.
Yesterday's values : 965-962-959.
1.5 hours later, trade is still flat and in yesterday's range.5422-5442 total 20 points for the day so far.
Bn has ventured below value low to touch 10390.
Shorts can be initiated below 10385 for 10340. Sl of 10410 or value low.
Dear Shai any updates on Reliance call, it is looking weak today...
Thanks
30 pt narrow range in a 100 pt range in a 300 pt range
oh boy what a boring market
Shai, Kotak Bank future - seems to be a break out - pl. ur views....
Yes janak,
Kotak bank is a great pick!
It's got everything, balanced profile, shorts squaring up and volume.
Good one.
Dear Shai, yest Reliance call still good???
Thanks
Bizagra,
Sl mentioned as 1005.
Thanks Shai.
thnks Sai, since last 2 hrs. - TCS future is at 656-658!!!!!!
sorry Shai! it is betn. 856-858....
Bye Shai & friends.
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New post by Viren.
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