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Expiry Date

Discussion in 'Technical Analysis' started by siva934127, Sep 25, 2013.

  1. siva934127

    siva934127 Member

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    Please let me know your views for the below queries?

    1.Why expiry date is so important for markets?

    2.How to trade when the market is in down trend at expiry date?

    3.How to trade when the market is in up trend trend at expiry date?

    4.How FII'S and DII'S play at expiry date?

    5.Will expiry date trend follows the 1st day of the next month contract?

    6.How individual shares will get effect?

    Please do not tell follow the support and resistance, because wide moves will be there at expiry day.


    Thanks,
    Siva.
     
    siva934127, Sep 25, 2013
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  2. sanjay_sansanwal

    sanjay_sansanwal Contributor

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    So many Ques., I'll try to answer all but in evening cause it will take time.
     
    sanjay_sansanwal, Sep 25, 2013
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  3. siva934127

    siva934127 Member

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    :) Thanks in advance.

    Siva.
     
    siva934127, Sep 25, 2013
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  4. chequesuraj

    chequesuraj Member

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    Thanks Siva...;)

    Sanjay...We are also awaiting the answers for the Q's...

    -Suraj
     
    chequesuraj, Sep 25, 2013
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  5. shabbir

    shabbir Administrator Staff Member

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    Because every trade either needs to be settled or need to roll over.

    Stay away on the expiry dates as wild swings are possible but if you are in it, you need to be patience as market just give you a kill or give you the price you want to be doing.

    If you cannot stay away and if you see trend is down, then people will have to cover their shorts and so you know how it would be.

    Reverse of when trend is down, everyone is long and so need to square off.

    As traders and investors only.

    No.

    What do you mean by individual shares?

    :ihih:
     
    shabbir, Sep 25, 2013
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  6. siva934127

    siva934127 Member

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    Quote:
    Originally Posted by siva934127 View Post
    6.How individual shares will get effect?
    What do you mean by individual shares?


    For example TataMotors stock has strong pattern in uptrend and it move touches highs but at expiry date nifty is gone 100 points down, So TataMotors follows nifty or it has its own pattern.

    Thanks,
    Siva.
     
    siva934127, Sep 25, 2013
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  7. shabbir

    shabbir Administrator Staff Member

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    Similar to Nifty as you have answered the same.
     
    shabbir, Sep 25, 2013
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  8. sanjay_sansanwal

    sanjay_sansanwal Contributor

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    Sorry for delay, actually today was very tiring day came late and slept.
    Now ur queries.

    1.Why expiry date is so important for markets?


    Expiry is important for Future and option traders cause they have to square of their positions or else it will be squared of automatically by system. I don't think retail investor should get involve in that. Retail investor can take benefit of expiry to take exit from the scrip which got down in previous because of short covering on expiry vice versa on up side.

    2.How to trade when the market is in down trend at expiry date?

    Retail investor should not trade @ expiry weather in downtrend or uptrend.

    3.How to trade when the market is in up trend trend at expiry date?

    Retail investor should not trade @ expiry weather in downtrend or uptrend.

    4.How FII'S and DII'S play at expiry date?

    They just square of their position just like others do and they take rollover for next month.

    5.Will expiry date trend follows the 1st day of the next month contract?

    Not necessarily.

    6.How individual shares will get effect?

    Stock which got down in previously get up little bit because of short covering other side stock which got up previously get lil bit down because of long unwinding.



    I have answered all ur queries in very simpler way hope u find the solutions, feel free to ask if find any doubts.

    :policeman::policeman:


    __________________
    REGARDS,
    SANJAY SANSANWAL
     
    sanjay_sansanwal, Sep 26, 2013
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