Last Friday, Indian bourses NSE, BSE & MSE decided to cancel licensing agreements for providing indices and securities-related data feed services to any foreign exchange or trading platform. It have taken a joint initiative to stop trading of derivative contracts based on Indian indices on overseas exchanges. It is a move to stop migrating liquidity to overseas exchanges.
Last Friday NSE Equity market turnover is on record volumes trades at more than Rs 43,621 crore. Previous high in equity market segment was Rs 41,113 crore hit on April 21 this year. Nifty Index and Bank Nifty Index made a big comeback on last trading day with bigger gain and made a weekly returns of -0.3% and 1.48% respectively.
The Singapore Exchange, which is started trading in Nifty options in December 2011, may very well see a significant portion of volumes moving overseas.Lower transaction costs due to lower taxation will likely result in Singapore emerging as the destination of choice for trading in Nifty options, suggest some experts
As of now 7500CE and 8000CE has the higher open interest which indicates a possible resistance at 7500 for the current month. As Nifty Responded with a sharp reversal from the high on Election Results Event once can conclude that smart money started shorting 7500 and 8000.
Nifty and Bank Nifty maintains the positional buy mode on the hourly charts. Currently the support zone comes near 5953 and 10097. Reverse your position to sell mode if the support zone breaks on the hourly charts on closing basis.
Currently SGX Nifty is down more than 250points from yesterdays levels and the global cues are strongly unsupportive. Nifty EOD Supports are near the zone 5000-5020 levels breaking this on EOD basis could result in more weakness in the system. Investors can wait and go for buy if nifty holds 5000-5020 zone on EOD basis.