What a day !
It’s days like these which makes one so passionate about trading and also puts up a notice that you cannot take the market for granted.
Consider it this way, the safest traders at the start of the series were the 5800 PE writers, who had nothing going wrong for them for the entire series, till it came to the last 30 minutes !
The Sellers have had it right this entire series,maybe their best series from 2008,and could not have asked for a better finish. They went for the 5800 PE writers at the close.Some survived the scare but the figure read as 22,74,000 reduced from yesterday’s 63,37,000 posted by Girish earlier this morning.
To be honest, I was thinking that it would be the 5900 CE which would be in the firing line, but the turnaround was swift and methodical.
In line with Shai’s post over the weekend and the fact that this was a move directed for the November settlement, we picked up some Longs at the close, 3 points from the lows of the day. We feel we have a great price on these and would like to keep it till the market tells us otherwise.
The December future actually reflected the correct price of the mkt today. One should not trade the expiring contract on the day of expiry as it can be manipulated for the Open Interest.
Confidence was missing in the banks today in terms of buying support. We will be keeping a close eye on this future for clues to market direction.
The Nifty and the Bank Nifty closed above the lows from yesterday.
