Wednesday, July 29, 2009

Wild moves on the penultimate day of F&O settlement

Today(29-7-09)Nifty moved wildly and settled at 4514 in the closing, with a loss of 50 points. Nifty opened at 4521 with a loss of 43 points and steadily moved up till 11.00 and reached 4574,a gain of 53 points from the low. After that it slowly moved down and at 11.30 was at 4544. Then came the wild downward swing of 100 points which dropped Nifty to 4441 by 12.00 and to 4421 by 12.30. One hour up to 13.30 Nifty moved in the central area of Chatusruti Rishabham (4464) before climbing back to 4525 and closing at 4514. Though Nandi had cautioned in his last post, based on the Agni level position, the magnitude of the fall and the recovery seen was not anticipated today as July series settlement is due for tomorrow. The recovery was necessary due to the OI position of puts in the system. Positive opening of European markets was also conducive for a recovery.
Don't hold longs as far as Nifty is below the Agni level. Agni level for tomorrow is at 4601.

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