iCharts Discussions

[acharyams]

[shashangan]

Dont want to risk. So Exited my intra day entry @ 5651. Do the same place an order to sell Nov @ 5652-54.

This may be the high for the day. The mkt will get into a consolidation range & may get back to 5610.

Gautham Shashangan

[shashangan]

If you want to try some punting short @ 5653-55 with stop 5671. Target could be 5615-10 region

Or just stay quiet till mkt consolidates & gives a fresh buy. Dont play a short without stop. Never know if they would want to close it strong since near closing. Exit before close if you enter.

Gautham Shashangan

[shashangan]

Intra day players. Exit all longs mkt. Mkt may reverse from 5657-62

Good luck

I am off for the day got some work

Gautham Shashangan

[shashangan]

[acharyams]

[shashangan]

Thanks Acharya

Shall see you on Monday. Enjoy your weekend. Shall check the chart again later & give my view though.

Cheers
Gautham Shashangan

[shashangan]

I am trying to make an approximate guess of tomorrow based on my analysis. I need to be there to tell the exact intra day moves. So this could be wrong & too early to project, since intra day moves are very difficult to predict accurately without seeing. Anyway let's see, here is my view.

I have a feeling probably mkt may be down in the morning. 5647 Nov will see some selling with max 5652 after the open.

5652- 5611 could be the range till 11.30 am. Mkt may see some buying at @ 5619-16 area. If this level can get in some good strong weekend buying interest, the mkt may go to break the highs again in the afternoon.

But If the buying is not strong going through noon, then probably people may book their profits for the weekend or short to make the weekly closing look bear. Remember people will also start switching their positions from Nov to Dec. So it's quite difficult to say without seeing the mkt.

But I am not bearish, I still stand bullish on my view for 5880-5900 target in December. I am just trying to picturise the whole move of tomorrow since I wont be there. Again this view is a guess, do your analysis I could be wrong. Since there will be other factors of World Markets & $ movements which can also affect the open.

Good luck
Gautham Shashangan

[vinay28]

10.30-12 crucial period from a different angle.

[acharyams]

I READ FROM YAHOO
"(NSE) on Wednesday said it will not issue mini derivative contracts on its key benchmark index, S&P CNX Nifty, from February as per market regulator's Sebi directives.

In a circular, NSE said it would not issue any fresh mini futures or options contracts from February 1, 2013.

However, the existing unexpired contracts till January 2013 would be traded till expiry and new strikes can also be introduced in the existing contract months.

Securities and Exchange Board of India (Sebi) had on Wednesday asked stock exchanges - BSE and NSE - to discontinue such contracts on their respective indices Sensex and Nifty with a minimum size of Rs 1 lakh.

The move was aimed to discourage small investors from getting attracted to these instruments.

Derivatives are contracts between two or more entities and their value depends on underlying assets such as stocks.

"Mini derivative (Futures & Options) contracts on S&P CNX Nifty Index (MINIFTY) for new expiry months shall not be available for trading on expiry of existing contract months ...no contracts shall be available for trading in MINIFTY with effect from February 1, 2013," the exchange said.

"However, the existing unexpired contracts of expiry months November 2012, December 2012 and January 2013 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months," it added.

The regulator had introduced mini derivatives in December 2007".
PLEASE COMMENT, SIR

[shashangan]

Had heard. But then What can I say Acharya. It's really bad for traders like me. I do wonderful hedge strategies with options which gives me freedom to play multiple entries.

I do one lot long term & a couple of other entries as short term & intra day.
At times I keep one long & if i am sure there will be a fall I short in the next contract keeping the long open. All my strategies will go for a toss

Hoping they will cease to do it. I am just wishing they will not stop the mini. I will have to re - plan all my trading since the risks will be higher & I will be limiting my trades.

Anyway for now I am not thinking about it. Will see when it happens.

Gautham Shashangan

[vinay28]

It is basically done to prevent large players from hedging in mininifty. The inside story is known to sebi only

[shashangan]

Oh ok. But the volumes comparatively are so small in mini. Even if it is the case, They should find a different way to address the issue than discontinue mini. Why did they introduce it in the first place then. There are mini contracts in most of the world markets. They should check with other world exchanges how they counter this issue. Though Indians are masters of manipulation, there is always a solution to a problem. They are just finding a easier solution to the problem. That's not in the good spirits for SEBI or NSE.

People should protest against it. Anyway, if there is a protest system to appeal for it, do let me know, I will appeal with the system to stop the discontinuation.

Gautham Shashangan

[shashangan]

I just figured out one solution myself. What SEBI can do is make mini contracts 25 or 10 Rs. instead of 20 Rs.

They peg the Mini Nifty to Nifty 50. What happens is If it's 25 when 2 mini lots are placed it buys one lot in Nifty 50 & when 2 mini sells are placed It sells one Nifty 50.

If it's made 10 Rs. then 5 contracts. It can still be done with mini 20 by placing 2 lots buy when 5 mini buys are placed, which will be 100.

That way the price will not vary in mini & main nifty. The biggest challenge they will be facing now is it to keep the prices of both Mini & Main Nifty same, since if huge hedge positions of Main Nifty comes into mini there will be disparity. If they do this both the quotes of Main Nifty & Mini Nifty will always be same, there wont be even 1 paisa difference.

Do you get me Vinay. Hope it's not confusing. But it's a simple software adjustment they need to do, if that's the problem. I think this is the simple solution, they dont have to worry about what volumes is traded, because it's all going into one system. The mistake they are doing now is they are operating Mini & Main Nifty separately, that's reason there is a difference in prices also & they have to keep a watch that the prices don't start going in 2 different directions due to hedging & manipulations.

Anyway Good night for now. Have a long day tomorrow.

Gautham Shashangan

[vinay28]

".....Though Indians are masters of manipulation,........"

don't forget that it includes sebi also.