Wednesday, July 29, 2009

Derivatives Expiry day


Today is F&O expiry in Indian Market. Normally I would like to avoid expiry days for Intraday trading. Some of the observations from market action

  1. Yesterday Volumes at Rs 147000 Cr , 3rd highest. Shows lot energy in the market. Volume path is important ingauging the price movement. Market tries to move where volume is greatest.
  2. Expiry day - Participants trying to adjust positions frenetically may lead to spurious and strike gunning.
  3. Today being heavy results day - I may wait for selective trades with less size as stops may be inappropriate to manage risk in this heightened volatility situation.

2 comments:

trader said...

Dear Gangineni,

Namaste and congratulations for the new layout of your blog.

Regards,

Newton Paulo Linchen

Gangineni Dhananjhay said...

Dear Newton Linchen,

Pranam and glad for your visits which provide me encouragement and motivation.

Regards,

Gangineni Dhananjhay

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