Tuesday, April 3, 2012

EOD Analysis For 3rd April 2012 and Outlook For 4th April 2012

OI in Nifty futures was lower at 21 million today and VIX was surprisingly cool below 21 levels!

Critical levels and outlook remain unchanged for both Nifty and Banknifty
Premium in nifty futures is still healthy but BNF premiums have shrunk significantly for April series - caution advised for shorts as BNF still is in 'Buy The Dips' mode IMHO....

Updating the image further [first uploaded on 28th Feb '12]

Clearly, option writers paradise if action remains range-bound like this; caution advised for those attempting to buy options as mentioned earlier as well - premium burn rates will be very high and will rapidly shrink further if price action gets stagnant as shown in this image

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