OCTOBER 2016 NIFTY Performance

Greetings !


Today is end of OCTOBER 2016 Contract Expiry. One of most news packed in recent history.

October expiry deserves special mention & coverage because of low morale, confidence seen among FnO traders’ mainly on account of sudden announcements done by both Corporates & Government of India, plus associated (paid or genuine) news, Rumours, allegations, counter allegations etc…  all in all unexpected news flow moved the markets.

Few of Sudden News’ Example are:

  1. PoK Surgical Strike news made public by DGMO ARMY
  2. Russia’s serious preparations for world war III & news articles for the same
  3. Cyrus Mistry & Tata Sons Feud, Coup over Tata Group & implied allegations thereof

If this was not enough, then in-between holidays, war news, muted global markets, IT & Banking results; and lastly Government’s silence on economic front added further salt & chili-power on already a deep cut.

In other words, during October expiry, we saw those things happening which were neither  expected nor scheduled rather it was all shocking and shaking to the core.


No volatility no trading: Market always need surprise news to generate required momentum’s therefore we need to bear abnormal price volatility, which is going to be fairly regular in nature going forward, henceforth.

However, we can trade only if the base of that volatility would be financials & economics.

Whereas, during current expiry, Nifty had seen only 5 days’ active price movements, and none were supported or generated purely by financials and economical reasons. Rest were sleepy therefore strictly avoided for trading.

This is only reason why we ask clients not to track general news. But rely solely on given Trading levels. We are maintaining highest possible RISK REWARD RATIO in Industry.


Point to Ponder: Even after all this negativity still nifty had seen (only) 250pts trading range (8500 to 8750); Is it not a sign of a internally strong market ?

We are bullish until 9187 levels, cmp 8550; however this will happen in stage manner. And at the same time we are not overly bullish, don’t expect over-nigh price appreciations.


Conclusion: Avoid TV, media news and follow trading levels with given SL for TGT.