Wednesday, December 12, 2012

Nifty's short term "sell on rises" continues with minor changes in EOD in the last 4 days.


13 comments:

varun kumar said...

Dear llango sir, DR sir or our blog option expert sanjay sir or my JN mates
Kindly make me understand the following:-
why nifty 6000 PE and 6100 PE are clsoed below their intrinsic value ( there is no time value left) respectively closed at 103 and 180 while the nifty spot is closed at 5888.
as per option terminology 6100 PE should be above 212 and 5900 PE should be above 112.
Am i right ?
Is there any specific reason?
Thanku

Bala said...

Dear Ilango Ji,

Referring to your earlier comment on "sell on rises when price closes below DHEMA".

What is the negation point of this sell on rises ? Is it until price closes above DHEMA ?

Or can I say "buy on dips" until price closes below DLEMA ? Is there any difference between the two ?

Thanks-in-advance.

Regards,

kalyani said...

@varun kumar,
it is indicating put writers confidence !!

chetas said...

Hi varun,

When nifty future is continuoysly trading at a premium ( 40 -42 pts today), it can happen that the in the money Put may trade below the intrinsic value, when you compare the Strike price Vs Nifty spot.

Though normally the value of Puts and calls should be based on the spot price, I have notice in India some how it is based on the furure price. Also many hedging strategies are execute using NF levels by algos and FII, hence this mispriceing.

however if you follow the puts prices vs Nf pirce, you would notice they move in alignment

Sanjay Jaiswal said...

@Varun,

@Chetas has interpreted the your question perfectly and given the best possible answer. Yes in India, the option price are based on NF.

Shradha Saburi said...

Good Evening Sir, and all My Gems of JN

Shradha Saburi said...


Friends
Nifty sell on rises continues with minor changes in EOD.
Thursday 6th Dec
NIFTY CLOSE 5930.90
HOUR SUPPORT RESISTACE CHANNEL 5916-5907-5898-5894-5883-5855
closed above hour support resistance channel.
Friday 7th DEC
NIFTY CLOSE 5907.40
HOUR SUPPORT RESISTANCE CHANNEL 5885-5896-5900-5907-5913-5919
closed in between.

Monday 10 DEC
NIFTY CLOSE 5908.90 DAY PIVOT 5906
HOUR SUPPORT RESISTANCE CHANNEL 5897-5901-5908-5912-5916
closed in between.
Tuesday 11 DEC
NIFTY CLOSE 5898.80 DAY PIVOT 5910
HOUR SUPPORT RESISTANCE CHANNEL 5899-5900-5912
closed below.
Wednesday 12DEC
NIFTY CLOSE 5888 DAY PIVOT 5896
HOUR SUPPORT RESISTANCE CHANNEL 5888-5893-5899-5901-5907
CLOSED BELOW
Minor changes 5907-5888 20 points
I am interpreting it with Hour candles.
regds

Shradha Saburi said...

In above check the high Nifty made then also closing below or inbetween hour trend lines from Friday to Wednesday.
regds

Shradha Saburi said...


5949.85 Friday
5919.95 Monday
5965.15 Tuesday
5924.6 Wednesday

varun kumar said...
This comment has been removed by the author.
varun kumar said...

@ Chetas & Sanjay sir,
Thanku very much for guidance

rajiv malik said...

watch fiscal cliff special @CNBCTV18News @CNBCWorld @CNBC

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