Friday, August 14, 2009

CUES FOR AUGUST 14

********POSITIONAL STRATEGY--

---Ideal Strategy- NEUTRAL.
---Do not hold long if closes below-4406.
--- Do not hold short if closes above -4533.

--- Visit the page to understand how to implement positional strategy during trading hours……….. http://niftydoctor.blogspot.com/2009/04/opening-range-breakout.html
---The positional strategy is based on my mechanical trading system.

********CUES--

--Nifty August future premium increased to 6 points so cost of carry increased. (Bullish)
--Nifty open interest decreased by 10 lacs suggests short covering. (Total OI now at 2.39 cr)
--4500 puts had open interest of 37 lacs (+44%) and 4700 calls had open interest of 42 lacs (+9%), so 4500 and 4700 will be important levels to watch for.
--India VIX closed at 42.80, increased by 0.7% suggests instability. (Bearish)
--In Nifty stocks, advance-decline ratio is at 50/00. (Bullish)