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Indexes in BUY | Expect divergence & profit

Navin Agrawal  -  Nov 10, 2014  -  Comments Off

Trade Date: November 07, 2014

Best BUYs: Consumer Finance, Industrial Conglomerates, Pharmaceuticals, Real Estate Management & Developers, Construction Materials

Best SELLs: Metals & Mining, Textiles, Apparel & Luxury Goods, Machinery, Electrical Equipment, Automobiles

NIFTY Analysis

CNX NIFTY closed -0.02% at 8337.00 (-1.30 points). There were 20 gainers, 0 remained unchanged & 30 losers. The 5 day EMA of CNX NIFTY is at 8281; The 50 day EMA is at 7978; The 200 day EMA is at 7302. It is in Buy mode for trading, Buy mode in short term and Strong Buy mode in medium term. The weighted outlook of index constituents is Buy / Sell / Buy.

NIFTY Futures gained 0.02% over previous day and gained 3.33% over past 5 sessions. NIFTY Futures closed 1.46% higher than their 5 day average traded price of 8265.56. Open Interest shares of NIFTY Futures were 8.60% lower than their Open Interest 5 sessions ago. Volume of NIFTY Futures was 46.68% higher than their 5 day average.

NIFTY with a Put – Call Ratio (PCR calculated across all 3 expiries as per our proprietary model) of 0.42 indicates Bullish outlook. Based on option pricing, the expected expiry range for NIFTY is 8244 – 8497 and expected trading range is 8249 – 8449.

Stock Futures Analysis

The average weighted price of 107 stock futures closed higher than 5 days ago, 103 of these closed higher than their 5 day ATP. Open Interest shares of 18 of them increased over the past 5 sessions and the Delivery % of 4 of these was higher than 5 day average delivery, showing BUYING on increased Open Interest & higher volume. The weighted average gain of stocks of these 4 stocks was 8.54%.

The average weighted price of 32 stock futures closed lower than 5 days ago, 30 of these closed lower than their 5 day ATP. Open Interest shares of 15 of them increased over the past 5 sessions and the Delivery % of 7 of these was higher than 5 day average delivery, showing SELLING on increased Open Interest & higher volume. The weighted average loss of stocks of these 7 stocks was -2.48%.

Stock Options Analysis

115 stocks with an average PCR of 0.37 across all 3 expiries have a Bullish outlook, 11 stocks with an average PCR of 1.01 are Neutral and 13 stocks with an average PCR of 1.50 are Bearish.

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