Maruti having short pull back rally.

Hi, Even though Maruti having short Pull back rally, I am really thinking the peak is near, and it is not advisable to go long on it until the dust on it settles,
Comparing all the major Auto Companies through out the World, All fell after a short pull back.

Disclaimer: Please trade on your own risk, this is just my thought and analysis.

Comment:

In order to support my claim, I request all the viewers of the page to take a look at the Maruti Option Chain and Maruti Nov Future Open Interest.

In simple words, There is a lot of reduction in the Open Interest in Calls, But there is hardly any addition in the Open Interest of Puts, This means that the money is flowing out of the market, And the Rise in Stock Price of Maruti is due to Sellers Buying back the Contracts at higher price and not due to demand, In such Markets the Fall in the price is very near.

Same goes with Futures Contracts, If we check the Open Interest on Futures Contracts, The Open Interest reduced from 25.63 Million to 24.37 Million on Friday, So again the outflow of cash, and covering of Short Positions, Causing price hike, not the demand.

Comment:

Open Interest in Calls from 7100-8000 today has increased by 2,19,525, Expect sharp slides towards downward direction.

Comment:

Also adding Open Interest in Futures, which reduced by -25,575, indicating outflow of cash from Market, further adding to the reason of downward momentum.

Trade closed manually:

Closing the trade as it is consuming too much time, better trades available in other Stocks and Indices.