Tuesday, April 17, 2012

EOD Analysis For 17th April 2012 and Outlook For 18th April 2012

Marginal increase of 2 million in Nifty futures OI i.e. 22 million today and VIX cooled off a shade further
[From today until expiry, will be counting OI in April/May/June contracts]

Critical levels and outlook for both Nifty and BankNifty remain unchanged from yesterday;
Price action on the bourses paying homage to 377 day cycle from 6th April '11 of 5944;

For alert traders, this week will be exciting but some whipsaws may be generated as well so safe traders should  hedge positions well and adhere to strict stop losses; as mentioned by seniors as well, again repeating that one should refrain from going for OTM option straddles and strangles as premium burn rates will be high.

As long as critical supports hold out, risk-reward ratio is still in favor of buying the dips IMHO though upside seems limited as of now

5348 is quite a tough level to conquer on Nifty spot on closing basis on upside [and likewise 10750-10800 on BankNifty; volumes are needed to follow up the buying

Finer trading levels covered by Raghuji and SMO

No comments: