Trading ideas for 9/08/2011

Trading ideas for 9/08/2011(Tuesday)

Inta pull back was again shorted

---

FII DERIVATIVES
Index Future	Index Option	Stock Future	Stock Index
+126	+546	+531	-1
FII Cash	-1385
DII Cash	+1320

---

India VIX : 28.78
Call OI : 48462150
Put OI : 41340050
PCR : 0.853
SMR : 33.74

---

Intraday support and resistance:

S2	S1	Pivot	R1	R2
5976	5048	5126	5198	5278

---

• Nifty Open Interest for August stands at 2,37,26,450 down by 5,38,500 with decrease in price (Huge Short Build-up)

• Bank Nifty Open Interest for August stands at 14,27,125 up by 53,525 with decrease in price (Short Build-up)

---

For 9/08/11 NF may take support at 5050

Above 5180 NF may rally up to 5135

Below 5050 NF may correct up to 4990

---

OPTION DATA ANALYSIS

As per OI Table call writing was seen at 5000 to 5400 while put writing was seen 5100 to 4700. Support comes around 5000 while resistance comes around 5400. Bears are taking all the chances to short in every rise. Nifty OI was again down with short building up. FII are net sellers in cash while net buyers in index and stock futures when they turn net buyers in cash market will stabilise. In any case if we see market near 4800 in this week use the opportunity to buy stocks. 

---

Expected Bullish Stocks For 9/08/2011: COALINDIA, CHAMBLFERT, AREVAT&D, TATACHEM, ACC.

Expected Bearish Stocks For 9/08/2011: DHANBANK, ULTRACEMCO, SREINFRA, GAIL.

---

NIFTY VIX

• VIX above 60 are dangerous levels. Markets will be highly unpredictable. If Markets are on a high (Nifty P/E above 24), then its advisable to exit the markets completely. Markets may be hot and totally bullish, but will most likely face a darker correction. Its just a question of time.
• VIX below 20 mostly indicate a more stable markets, purely because the volatility is less. It does not mean that markets wont fall. It just means that markets will follow predictable fundamental supports and resistances.

SMR = Smart Money Ratio (India VIX / PCR)

SMR is a measure of fear in the market. A value of less than 20 indicates that market is lack of fear and volatility and the higher PCR ratio(greater than 1) supports such kind of action. And a value of 60 or greater than 60 indicates too much of fear in the market which is highly motivated with lower PCR ratio (less than 1). It is a kind of indicator which provides information about which kind of market we are right now.

Put/Call Ratio

Put/call ratio (or put-call ratio, PCR) is a technical indicator demonstrating investors' sentiment.[1] The ratio represents a proportion between all the put options and all the call options purchased on any given day.

The market has bottomed when PCR was around 0.8-0.9 and topped when it was 1.2 or above.

HOW TO INTERPRET THESE VALUES

SMR with a value less than 15 indicates the market is lack of fear and volatility and along with high PCR ratio more than 1 supports such kind of action. And a value of more than 25 indicates too much of fear in the market which along with lower PCR ratio of less than 1 confirms it. It gives the mind of players in the market.