Posted by: Babu Suresh | February 26, 2009

26th Feb. 09 – NSE Trading Session

Nifty Spot 1M ChartNifty_Spot_1M260209

My yesterday’s understanding of Spot Nifty did pay off today after an extremely dull 1st half. I would not have expected a better last Thursday, it was a classic finish.

Tomorrow, a new and highly challenging era begins for NSE India for, about 250 Futures & Options scrips’ lot sizes have been increased along with higher exposure margins. There is lot of noise going on esp. in the media as though NSE will close down soon with this challenging move. The good point is Nifty Futures and Options have been left unchanged and we can expect good amount of liquidity happening in them with more retail traders participating in them, subject to our cash starving brokers charging usual brokerage instead of charging Rs.100 each on buying as well as selling side for options.

If I were to approach unbiasedly, SEBI’s and NSE’s such an unprecedented and bold move at the time of total lack of liquidity and volume in both Cash as well as Derivatives segment, for they are not stupid enough not to have taken various aspects into consideration, the following points come to my mind:

1. Protecting small and medium retail traders from further losing in Derivatives segment in this low volume high volatile market

2. Encouraging small and medium retail traders to focus on cash segment instead of consistently losing moeny on margin trades

3. Improving liquidity in Nifty Futures & Options

Its going to be an interesting period until any further improvisations contemplated by the SEBI and the NSE after seeing the response.

Nifty Spot 5Min. ChartNifty_Spot_5M_260209

Healthy And Wealthy Trading

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