December expiry futures outlook 28 nov 2014
Nifty dec expiry future today closed at 8549 with gains of 19 points. In intraday nifty future had hit high around 8553 while low was near 8500. Total 50 points intraday swing was seen and closed near highs with gains. Positive rollover of almost 29% open interest was seen. Here on dropping crude oil prices expect another spurt for index on short covering as well as buying interest. On option side 8500 call option was seen so expect short covering there so option traders can buy that option with strict stop loss in place. Medium term view on market remain cautious and investors must trail there profits with stop losses in place.
Banknifty index December future closed at 18160 with gains of 48 points. In intraday we had seen 150 + points swing and closing above 18k levels. On open interest side 43% long rollover seen. Here traders above 18k keep long view for target18350 to 18550. Option traders can buy 18k call option as sharp short covering is expected in intraday. Medium term outlook still cautious and investors must cap profits with trailing stop losses.
India vix had not seen any trading action today.
For Friday, 28 November 2014, my stock pick will be NTPC Limited. Today stock closed at 141 with gains. For intraday traders can buy ntpc stock around 140 with stop loss 136 for target 145-146.