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Tuesday, 11 October 2011

Derivatives Daily Update: 11.10.2011

Lackluster Day: 11.10.2011

On price charts, Nifty October Futures opened strong at 5028.90 taking clues from international markets, went up to 5055, could not sustain further, came down to 4970 and finally closed at 4982.45 marginally down by 10.85 points. Bank Nifty Futures too opened strong at 9275, went  up to 9373, drifted down to as low as 9140 and finally closed at 9176.40 down by just 13.85 points. It was absolute listless day as far as price activity is concerned.

On volume charts, Total no.of contracts traded were 41.96 lac and Total turnover was 1.04 Cr marginally up from yesterday's level. Put Call Ratio almost remained flat at 1.18. As far as Nifty futures is concerned traded quantity and  no. of contracts traded were lower for October series though no. of trades were marginally higher. Again change in Open Interest was at miniscule level and nothing to write about. Volatility as measured by India VIX was ruling at 30 levels.


SYMBOL     EXPIRY  OPEN INT CHG IN OI TR QTY CONT TRADES
NIFTY      25/10/2011 20963500 125000 -395150 -7903 3562
NIFTY      24/11/2011 1646200 175550 45350 907 1145
NIFTY      29/12/2011 367350 63850 16800 336 284

On technical charts, Nifty attempted to touch level of 5070-5100 (refer yesterday's post) but met with selling pressure and could not sustain the rise.Cautious approach with negative bias of participants is not allowing  Nifty to break its resistance zone. Similarly Shorts created by Bears are letting support at lower levels not allowing Nifty to break support zone either. In nutshell, we are trading in a range of 4718-5174  from last 6 weeks waiting to breakout on either side. In the process we are creating good support & resistance zone which will act as catalyst in days to come.

On stock futures front, active counters on volume parameter were State Bank, Infosys, Tata Motors, Reliance and ICICI Bank. Top gainers were Jubilant Foods 10% Chambal 8% Aban 6% Mcleod Russel 6% REC 5%. Top losers were Dhanlakshmi Bank -10% Educomp -4% Infosys -4% Cummins -3% Hexaware -3%.

On stock options front, Infosys 2600 CE, State Bank 1800 CE, Infosys 2500 PE, Infosys 2400 PE, Infosys 2700 CE were most active counters.

On Nifty options front, Positive change in Open Interest was seen in 5000 CE (713400) 5100 CE (895900) 5200 CE ( 363400) 5300 CE ( 551550) 5400 CE (888600) 4600 PE (708200) 4800 PE (507750) 5000 PE (364250) 5200 PE( 263950). Negative change in Open Interest was seen in 4700 CE (-342250) 4900 CE (-186650) 4400 PE (-514200) 4500 PE(-408550). Open Interest In the Money Call Option in Nifty was 58.50 lac shares and Put Options was 76.60 lac shares. Open Interest in Out of the Money Call Option was 2.8 Cr and Put Option was 4.4 Cr shares.

My prognosis of the market is still bearish. We are on weaker wicket as all resistance zones are met with fresh supply which in turn does not allow Nifty to break range on upper side. For a sustainable rally or trend reversal, price movement has to be sharper and must have a potential to scare the bears. Till that happens short the Nifty with adequate stops and enjoy the bear ride.

Happy Trading

Atul Doshi


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