Nifty Futures Trading

[parttimetrader]

Wow what a post Asish
loads of thanks for everything and the formula to calculate cost of carry.
In laymen terms, is this call money u referring is the same that banks lend to the other banks on overnight basis ?
and is that 14 % of call market is the highest rate in 6 years ?
As having a feeling that in formula, 'r' is the only relative figure and other things are constant ( spot will be vary but we calculating premium on it ) .
so can we assume that looking at call money rate we might get general idea of what cost of carry gonna be ?( i am trying to be a lazy sorry but want to skip formula part each and every time )
or i am very grossly mistaking somewhere ?and i have to go to the formula
plz do find time to explain my confusion, it will help me further
Alex

Alex - The 'r' is subjective - think of it as what best yield could I get in today's market, if I were the financier. HNIs and large financiers who invest money by buying cash stock and selling the relevant stock future attempt to lock in a fixed retun, will use the 'r' as the benchmark.

I don't want to give a generic prescription, I would look at the money-market, and use the yields on offer by money market funds. I mentioned call money to illustrate tight liquidity. If the weighted average call money rate (call money isn't only overnight) is higher than fund yields, I would use the higher number. The key is to use the right duration - your investment horizon is 1-month, so I want to get 1-month rates.

All this is a matter of detail and nitpicking... it's easy to know what interest rates are generally prevailing in the market - I wouldn't devote my energies to it, except to have a benchmark in mind.

See http://tinyurl.com/4qw2re for sure.

 

[uasish]

4023.55 is a minor Support zone.

 

[orderflow13]

Alex - The 'r' is subjective - think of it as what best yield could I get in today's market, if I were the financier. HNIs and large financiers who invest money by buying cash stock and selling the relevant stock future attempt to lock in a fixed retun, will use the 'r' as the benchmark.

I don't want to give a generic prescription, I would look at the money-market, and use the yields on offer by money market funds. I mentioned call money to illustrate tight liquidity. If the weighted average call money rate (call money isn't only overnight) is higher than fund yields, I would use the higher number. The key is to use the right duration - your investment horizon is 1-month, so I want to get 1-month rates.

All this is a matter of detail and nitpicking... it's easy to know what interest rates are generally prevailing in the market - I wouldn't devote my energies to it, except to have a benchmark in mind.

See http://tinyurl.com/4qw2re for sure.

Asish
thanks again, from bottom of my heart to make this concept ever so clear ...hats off to ur efforts
p.s. checked the link and since its my lunch time i am missing my pizza badly now , i recommend every one to read that link when they r hungry, they will get the concept fast

 

[uasish]

So with 10 points Stop (wiggling space) our prior knowledge of 4023.55 Longs can now be liquidated 50 % @ 4042.00 & now the Stop can be brought up to Long's Entry @ 4023.45

 

[uasish]

25 % released @ 4044.95

 

[uasish]

Now safe even if the Stop Hit no loss can be incurred in this last Trade.

 

[uasish]

Further better to bring up the Long's Stop to 4029.45

 

[uasish]

Now minor Resistance @ 4052.65

 

[uasish]

As holding is just 25 % hence not liquidating @ 4052.00 but waiting to see the retracement whether gets supported @ 4034.35

 

[devangan123]

Some relief work going for nifty to ensure that it does not closes below 4000 on weekly basis , IT stocks are leading this effort , Cazar your Satyam has turned into positive