Morning Update at 0800hrs for Intraday Market Level

[pranayk]

Morning update at 8 am 23 nov 09

on friday night dow had close in the red with 14 points down. European markets were down by 1% with uk ftse closing down by 1%. Brazil was down by .3%. With japan closed, asian markets have opened flat to mixed and are likely to remain flat to negative initially to show bullish momentum as the day progresses.

For indian markets, expect a flat to mildly weaker opening but will pick up strength as the day progresses. In the daily eod charts it was a bullish engulfing candle on friday that should see a sharp up move after a minor pause or a mild intraday correction to flush out weaker hands. The chart pattern depicted by weekly and daily charts show the possibility of a break out of the congestion zone above 5080 to 5090 levels in a day or two so traders and investors may go long above these levels or may wait for an intraday correction to enter long position in december futures.

 

[krishdwi]

If i have Nov Nifty futures on hand what happened to it on expiry date? Will it convert to Dec futures?

 

[Prabhan]

If i have Nov Nifty futures on hand what happened to it on expiry date? Will it convert to Dec futures?

Hi krishdwi ,
No, it will get auto settled by exchange on expiry if you dont square it off...If you need to carry over you futures position from Nov to Dec expiry..you need to square off Nov futures holding and take same position in Dec futures...Also, You can take positions in Dec futures without squarring off Nov futures if you can handle margin requirements but remember there is nothing like Nov futures will auto convert to Dec futures if you are not squarring off your position of Nov futures till expiry..
Hope this clarifies..

 

[pranayk]

markets for 24 nov 09

nifty as expected, after a mild pause, broke out of the congestion zone between 5080 to 5090 to move towards 5112 levels. Although it could not move further up towards much higher levels, yet it has made a firm base around 5085 levels from where it will spring into action every time it falls towards this support level. As there are no negative news internally & the world markets are showing buoyancy after decisively breaching there october highs, there is every possibility of both sensex & nifty crossing their october highs of 17493 & 5181 in next few days only to be in line with the history that november month 9 out of 10 times makes new highs than october highs.

Technically, nifty looks extremely strong to re test 2nd may 08 highs of 5299 in next few weeks. A decisive breach of the neck line of the reverse head & solder formation in the weekly chart above, clearly indicates unimaginable higher levels in the medium term before the end of the current financial year. If one opens the hourly charts, one will notice that the wrb around 2 pm has made a 2 in 1 out side bar and an inside bar. So breach of highs and lows of the high bar around 5113 or 5085 can see substantial move in the direction of breach and the way things are going in world markets, there is every possibility of a further upside break out towards october highs of 5181 with a small break around 5152 to 5159.traders may add further long positions on a decisive breach of 5120 by spot nifty for higher levels

FOR INTRADAY TRADING ON TUESDAY, TRADERS MUST KEEP AN EYE ON THE HIGH OF THE 3 IN 1 INSIDE BAR OF 21ST OCTOBER IN THE HOURLY CHARTS. THE WRB AROUND 11 AM HAS A HIGH AT 5118 AND LOW AT 5091 & CONTAINS THREE SMALLER BARS RIGHT OF IT OUT OF WHICH ONE AT 1 PM IS A PERFECT DOJI. THE LOW AT 5091 WAS BREACHED ON 21ST OCT AT 3 PM AND BY 3 PM ON 22 OCT NIFTY HAD FALLEN TILL 4968 & THE FALL CONTINUED FURTHER DEEP DOWN. NOW IF THE HIGH OF THE WRB( WIDE RANGING BAR) AT 5118 IS DECISIVELY BREACHED THEN A SIMILAR UPWARD THRUST MAY BE SEEN TOWARDS NEW YEARLY HIGHS. THE CHART PATTERNS AS WELL AS THIS 3 IN 1 INSIDE BAR TRADE SET UP ENCOURAGES ONE TO LOOK FOR INTRADAY DECLINES TO BOLDLY GO LONG ON EVERY INTRADAY DECLINE FOR GOOD GAINS IN NEXT FEW DAYS.

 

[Prabhan]

Hi Pranay,
Where do you see nifty on 26th Nov expiry?

 

[anilsaxena]

Hi Pranay

Where do you see India Cement moving from here ?

 

[pranayk]

morning update at 8 am 24 nov 09

after 3 consecutive days of falls, dow recovered remarkably to close 132 points up. More importantly s&p500 crossed 1100 mark and closed above it at 1106. Brazil was up .8%. European markets closed 1.5% to 2.5% in the green with dax closing up by 2.4% & uk ftse closing up by 1.7%.asian markets have opened mixed but will recover fast as the day progresses. One will notice that big international fund houses will be liquidating sluggish markets of japan & korea to pour into india, hong kong in china.

For indian markets, the weakness in asian markets may come as a boon because any pause or mild corrections in indian markets will rope in big fund houses to grab the opportunity of buying into indian markets. Traders must look for a pause or mild correction in indian markets to buy december futures and hold boldly for great gains in coming days. Traders should not get perturbed by seeing red in other asian markets & take this as a god sent opportunity to go long on slightest amount of intraday correction towards 5050 levels.

 

[pranayk]

Hi Pranay

Where do you see India Cement moving from here ?

May be around 110 till expiry

 

[krishdwi]

Hi krishdwi ,
No, it will get auto settled by exchange on expiry if you dont square it off...If you need to carry over you futures position from Nov to Dec expiry..you need to square off Nov futures holding and take same position in Dec futures...Also, You can take positions in Dec futures without squarring off Nov futures if you can handle margin requirements but remember there is nothing like Nov futures will auto convert to Dec futures if you are not squarring off your position of Nov futures till expiry..
Hope this clarifies..

Thank you so much

 

[lazytrader]

Thank you so much

I think there is extra charge from forced sqareoff.