Nifty Futures Trading

[Sunil]

obviously, as SGX is suggesting, all key supports of
4208 / 4183 / 4169-63 / 4150 will be broken...

If 4135 cannot provide support, then we have 4100 / 4080 - 70 to look forward to for dead cat bounce

 

[praveen taneja]

India is going to lead the show... with nifty gap down >100 points which will further create panic among europian mkts.. it looks by end of the day nifty may shed upto 200 points.. unless there is a +ve statement from RBI or FM or europe banks .... sgx nifty futures already -141.... at 4091

 

[columbus]

obviously, as SGX is suggesting, all key supports of
4208 / 4183 / 4169-63 / 4150 will be broken...

If 4135 cannot provide support, then we have 4100 / 4080 - 70 to look forward to for dead cat bounce

Yesterday's night picture was a bit different as crude was below $100 mark.The real story unfolded by SGX Nifty.

 

[Sunil]

Yesterday's night picture was a bit different as crude was below $100 mark.The real story unfolded by SGX Nifty.

it's more bacause of lehman bros' problem & BOA buying Merill lynch...
also rupee at nearly 2 years' LOW

 

[gunavadhi]

opens@4064

 

[RSI]

Thanks for your reply RSI... but it can also be taken that the PUT writers would have squared off their positions expecting further downfall and to prevent any losses ryt?

Those who write options are supposed to be much smarter than those who are trading in cash markets. Basic premise in writing put or call is first assessing direction of the market and then devising a strategy to profit from it. To do that one must be smart. Needless to say, these smart people also devise methods to cut down losses even before writing puts/calls (that too naked puts/calls). So if one is cutting down losses, one will not wait until the market reaches the bottom or the perceived bottom. Even on general thinking also cutting down losses at the bottom of the market (that too in puts) is not a smart idea. If one is so sure that market is going up, why can't he wait for some more days, so that market goes up and losses in naked puts are pruned down? Look at the chart of Nifty futures. Nifty is very close to an important level, breaking of which will create panic. That is what Rajaram was trying to highlight. Also, if there are shorts, they will cushion further downfall. But as Rajaram reported, there are no sufficient shorts this time. On the contrary there are longs, which is yet to be wound up, which is worse. So if the market breaks, longs will have to be wound up in panic, shorts will be created in a hurry, combining effect of both these will be horrendous.
Let us watch from the sidelines, if one is not accustomed to trade in such volatile markets.
I hope this helps
Regards
R. S. Iyer

 

[Flock]

What do you think. Will this be another knee jerk reaction from global cues with 4000 spot providing support, or are we headed for a major leg down retesting or even taking out the previous low?

 

[RSI]

As I was typing the last message, markets opened and look at the gaping gap. What a downfall.

 

[praveen taneja]

below 4000 i think major selling will also start as people who are long will book loss as suggested by Da lets see...???????????

 

[uasish]

We may see a Freeze .