Saturday, November 26, 2011

Nifty made 2 year low......

Friends,
For the first time recently there were trades of 4000 Nifty PUTS.High of PUT Options was 15.50 and low 10.70 and closed 13.70.
So is this a move to trap bears or opening of a new low for Nifty?In other words is this is a BEAR TRAP from BULLS or what?
I have explained in details how this game is played of F&O.How PUT Options and Call Options are written and who writes them and how they play it .
But there was buying seen in 4800 -5000 Nifty Call Options as well which says someone is taking a bullish stance as well and thus coming out against the Bear Camp who wants to see 3900..........lol....
I am observing this fight with great interest as both camps are coming against each other after 3-4 months as bears were having upper hand in that time.
I personally feel , news and circumstances still are not in favour of BULLS and will have to see how much long they can stand against bears before finally succumbing for the level 3900.
Maybe for a ST for say a month or two market can make a rally as it is in oversold zone but after that it will all depends on the EU financial crisis, and how our politicians will handle the Inflation, reforms,weakening rupee etc.......
With FDI in retial I feel is a good move as with more FDI coming in this sector will also tone up the real Esatate sector for offices and it will also stop rupee depreciating more now as with more FDI coming for investment there will be demand for rupee which will take rupee back below 50.......

2 comments:

  1. Hi Rajeev,
    I am a big fan of your blog. Just wanted to know your views on spicejet. I saw that in your earlier posts you had once recommended spice jet. Just want to know if you still think the same. I have done some research about the company and have put my findings here http://tavaamrit.blogspot.com/2011/11/why-spicejet-can-be-multibagger.html . Please have a look if you get time and let me know if I am missing any point. I am itching to invest in this company and hence would appreciate any comments

    Amritava

    ReplyDelete
  2. Hi AmitTava,
    Spice Jet looks good.But remember it is capital Intensive sector.....

    ReplyDelete