Nifty Futures Intraday Trading Report April 20, 2011

Not a spectacular day for me. Initially I shorted in between 5830 and 5840. The momentum slowed down at these levels so I thought the market may follow the math. However, within no time, the value of the contract surged past these levels and touched my stop loss which was placed in between 5860 and 5870.

Once again I shorted in between 5860 and 5870 during the closing period. The trade got squared off in between 5870 and 5880 for a loss. 😦

There was a wide gap in between yesterday’s closing price and today’s opening price. I have often wondered why the contract opens about +/- 50 points from yesterday’s close price. This is a trend which I have only seen in the Indian markets; surprisingly, no one seems to have any issues with it!

I know a bunch of people who went long on this day; they bought at 5800 – 5820 levels. Luckily for them the market went on to create newer highs throughout the closing periods. A word of caution; such freak movements occur quite a lot in our markets. It can provide the traders with the false sensation of “being with the trend”. The intelligent traders, on the other hand, will try to specialize in “buying the fear and selling the greed”. According to the market math (that was destined for today), stiff resistance lay from 5840 to 5900. However, the contract went on slaying through these price points…as if it did not even exist! One can notice such auspicious events exclusively while trading nifty futures contracts.

Let us see what is in store for me tomorrow. 🙂


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