The Volatility is back, not only in our markets but globally also. Nifty has outperformed US markets by a whopping 8.3% in the last quarter month. It is a common scenario but it does reverse also. On the 1st day of the start of September expiry, we gave the Nifty range between 17200 and 17900 which is playing out as expected.
There are a few changes though. Options volumes are increasing at an alarming rate which is not good for the health of overall markets. Cash volumes are lower and big players have shifted their focus to Index and Stock Futures. Retailers penchant for Option trading can make their exposure highly risky and without hedging, it would be a tough ride.
Nifty. Nifty has been able to hold 17500 but any break there can take it to 17350 and eventually 17180. For the day 17650 should act as resistance.
BankNifty. Gave a decent dip till 39100 yesterday but reversed which indicates continued bullishness. 39000/38900 becomes the most important support with resistance only at 40000.
Derivative. Data formation is very surprising. The kind of volumes we are seeing, it is changing trend every other day. Huge shorts have been created in Index and Stock Futures with put longs suggesting bearishness.
A cautious day.
There are a few changes though. Options volumes are increasing at an alarming rate which is not good for the health of overall markets. Cash volumes are lower and big players have shifted their focus to Index and Stock Futures. Retailers penchant for Option trading can make their exposure highly risky and without hedging, it would be a tough ride.
Nifty. Nifty has been able to hold 17500 but any break there can take it to 17350 and eventually 17180. For the day 17650 should act as resistance.
BankNifty. Gave a decent dip till 39100 yesterday but reversed which indicates continued bullishness. 39000/38900 becomes the most important support with resistance only at 40000.
Derivative. Data formation is very surprising. The kind of volumes we are seeing, it is changing trend every other day. Huge shorts have been created in Index and Stock Futures with put longs suggesting bearishness.
A cautious day.
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