A Listless Day: 05 Dec 2011
Nifty December Futures almost closed where it opened. It closed at 5065.60 down by 15.1 points. Bank Nifty closed almost flat at 9207.45 down by 0.15 points. Volumes were lower than yesterday both value wise and quantity wise. Open Interest on consolidated basis across all the series was up by 5.73 lac shares in Nifty and it was down by 1.03 lac shares in Bank Nifty. Put Call Ratio too came down to 0.86 from yesterday’s level of 0.94. It signifies lot of Call Writing happening in market place. Volatility as measured by India VIX shot up by 4% and was trading at 25.02 up from yesterday’s level of 23.99.
Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, AXISBANK, TATASTEEL and RELIANCE.
Top five individual options which attracted higher activity today were SBIN 1900 CE, SBIN 2000 CE, IBREALEST 65 CE, AXISBANK 1000 CE and IFCI 27 CE.
Top five individual stocks which gained today were GVKPIL 6%, HINDOILEXP 6%, ASHOKLEY 6%, SRTRANSFIN 5% and ADANIPOWER 4%.
Top five individual stocks which lost ground were PANTALOON -13%, BRFL -10% VIPIND -5% CESC -4% and JSWSTEEL -4%.
Nifty option series where POSITIVE change in open interest was seen were 5100 CE (6.35 LK) 5200 CE (9.20 LK) 5300 CE (6.37 LK) 5400 CE (6.87 LK) 5500 CE (2.98 LK) 5600 CE (1.88 LK) 4200 PE (2.26 LK) 4400 PE (7.26 LK) 4800 PE ( 1.42 LK) 4900 PE (2.17 LK) 5100 PE (1.26 LK).
Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-1.23 LK) 4800 CE (-3.70 LK) 4900 CE (-1.11 LK) 4300 PE (-7.52 LK).
Outstanding open interest in Out of the Money Call Options stood at 2.97 Cr shares and that of Put Options stood at 5.23 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.41 Cr shares and that of Put Options stood at 89.78 Lk shares.
In conclusion, today’s option data as well as Put Call Ratio indicates that market participants are not gunge-ho about the market. In extremely short term till we are above 5025, chances of seeing the level of 5275 5300 very much exists though probability of sustaining this levels, is very low. In the event of breaking down below 5025, revisit of earlier low of 4630 is very high on probability chart. So plain advice is to short the markets both in rising and declining trend with reasonable stop loss.
Happy Trading
Atul Doshi
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