Markets and Mornings!

After the last expiry of the year yesterday we are now welcoming the last trading day of the year. Today is Friday and we are starting the January series on the last trading day of the year. We are starting without any big fundamentals affecting the market. The only fundamental that can affect Reliance group of stocks is Mukesh and Anil Ambani coming together again and Mukesh coming in to buy the wireless business of Relcomm by Jio. Jio in a way will bail out Rel comm and that could bring down the debt of Relcomm by 25,000 Crore. In other ways, holiday mood has set in and people will flock to holiday destinations and today we could see the lowest volumes in the year.

Futures and Options!

On the derivatives front, January series will start with 65% roll overs and maximum change in the open interest is observed at 10700 and 11000 calls. 10700 call had 10.69 lakh contracts created while 11000 call had a record 12.1 lakh contracts created. 11000 call is at 8 rupees premium and that means January can see NIFTY touching 11000 at some point. The first stop however is the 10750 where it might encounter a lot of resistance. But all these are mere speculations looking at the options data. On the put side maximum change in the open interest is at 10200 and 10300 put suggesting that 10150 is a strong bottom which cannot be easily taken out. In short January series might move between 10150 and 10750 range and right now we are exactly at the middle. If 10750 is taken out then the journey towards 11000 will start.

What is the NIFTY strategy for the day?

Yesterday would have given you a 50 point profit and that is the result of different positions we took this week. Now its a new day and the new series. NIFTY will open flat again close to 10500 level and I would advise taking a long position below 10480 and take it into new year. There are no negative cues and January 1st is a working day for markets. So on the New year day it will make some bullish moves and taking the positions today below 10500 or around 10500 will help you to start 2018 on a real winning note! Good luck and this is the last post of mine in 2017. I will see you again in 2018 with lot of good news and lot of money to be made in the markets!