Market Outlook for the month of August,2012

August 6, 2012   ·   1 Comments

 

Market Outlook for the month of August

 

FII’s were net buyers in cash market segment; they  were net buyer’s worth of `209/- cr. in Friday’s trade.  On derivatives front they were net sellers in index futures, while in index options they were net buyers with decent buildup in open interest.

 

On options front 5300 and 5500 call option has seen good amount of buildup in open interest, while in put option 5000 strike price continue to see strong  buildup in open interest indicating a major support for this series and 4800 put option has seen some unwinding in Fridays trading session.

 

Right now, The highest open interest is at 5000 Puts and 5500 Calls which will act as strong support and resistance for the market. Now this 500 points range is big enough to initiate trades. Trade with positive bias and don’t short or bank in any circumstance.

 

5000 puts have more than 10 Lac contracts in open interest which shows that bull are betting strong that Nifty wont breach 5000 Puts for the month of August and Bears shorting 5500 calls shows that bears are also expecting the market to be string for the month of August.

 

Trade: Buy Nifty future and future, which is trading at 5180, and 10500 levels with a Stop loss of 5250 and 10400 levels.  Nifty can give 200 points trade for this month and similarly, can give more than 500 points trade for the month of August.

What do you feel about this analysis? Let me know your views in the form of comments. I would love to hear them.

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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  • rajsingla

    @Nifty at 5390 in 2 days.. The one which have taken the trade can book partial profit and can move the SL to trailing 5350 levels.

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