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Tuesday, 6 September 2011

Derivatives Daily Update:06.09.2011

Derivatives Update:06.09.2011


SYMBOL     EXPIRY OPEN  HIGH LOW CLOSE CHG
NIFTY      29/09/2011 4987 5072.25 4931.9 5061.1  50.6
BANKNIFTY  29/09/2011 9558 9690.7 9325 9659.6  62.85

Nifty September Futures opened at 4987 slightly weaker taking cues from global markets went further down to 4931.90, bounced back to 5072.25 finally closing at 5061.10 up by 50.60 points. Bank nifty too continued its upward journey finally closing at 9659.60 up by 62.85 points.Bank Nifty is consecutively rising for 5 days and has added nearly 685 points in this 5 days.

SYMBOL     EXPIRY  OPENINT CHG IN OI TR QTY CONT TRADES
NIFTY      29/09/2011 26568000 754500 7532500 150650 36245
NIFTY      25/10/2011 1187100 60000 53100 1062 1136
NIFTY      24/11/2011 185950 13550 -18150 -363 44

Data from volume charts were also encouraging. Ina rising market traded quantity has increased by whooping 7532500, No.of Contracts traded has increased by 150650 and No.of trades have also increased by 36245 in September Futures. Today also Nifty September Futures has added Open Interest by 754500 indicating Bulls might have been active in the markets and have mopped up September Futures. We started September series on 26.08.2011 with Open interest of 24228900 and closing price of 4749. Today open Interest is 26568000 and closing price is 5061.

As indicated in earlier posts some built up is seen in the Nifty Futures. Short covering plus fresh buying by bulls have lent a support to the market and we have seen a rise of nearly 7% from its low. This trend may continue for few more days as we are correcting a major bear trend. This pull back may continue up to 5362 with some stiff hurdles at 5175 level. Medium to long term we are still in bear trend and every rise in the market is shorting opportunity. those who want to play this corrective rally has to keep strict stop at 4835 and ride the rally till 5175 or at the most 5362.

Among Stock Futures, SBI, RIL, ICICIBk, Tata Motors, DLF were top traded counters. Top gainers in F&O segment included Escorts +10% Polaris +8% Educomp 8% Hexaware 7% Orchid 6% while losers were DLF -4% HDIL -4% Cummins -3% Sobha -3% Federal bank -3%


Markets are passing through critical phase where volatility is higher due to global plus domestic events. Nifty saw fall of approx 950 points last series and is up by nearly 350 points from its bottom. Days are crucial and advise is to trade cautiously. Any major breakouts are possible in this series and hence watch the screen very closely.

Till then, Happy trading.

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