Short Covering Day: 13 December 2011.
Nifty December Futures after opening weak managed to close above by 37.65 points at 4811.35, though Bank Nifty was unable to close in positive zone and it closed at 8553.90 marginally down by 13.1 points. Volumes on overall basis were higher than yesterday. Both Index futures and Stock Futures saw increase in volume and that of Index Options & Stock Options saw lower volumes than yesterday. Open Interest in Nifty Futures came down by 6.10 Lk shares and was up by 1.55 Lk shares in Bank Nifty on aggregate basis across all series. Put Call Ratio was steady at 0.89 marginally up from yesterday’s level of 0.85. Volatility as measured by India VIX was down by 4% at 28.11 from 29.27 level of yesterday. All in all it was a up day and some short covering was seen in the market place.
Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, RELIANCE, TATASTEEL and LT.
Top five individual options which attracted higher activity today were SBIN 1800 CE, TATASTEEL 400 CE, SBIN 1900 CE, RELIANCE 760 CE and RELIANCE 740 CE.
Top five individual stocks which gained today were WELCORP 13%, 3IINFOTECH 7% HINDALCO 6% GMRINFRA 6% and AREVAT&D 5%.
Top five individual stocks which lost ground were PANTALOON -6%, JISLJAL -6%, SINTEX -5% TITAN -4% and UNIONBANK -4%.
Nifty option series where POSITIVE change in open interest was seen were 4600 CE (1.30 LK) 4700 CE (5.99 LK) 4900 CE (3.10 LK) 5000 CE (2.34 LK) 5100 CE (8.98 LK) 5400 CE (1 LK) 4300 PE (1.24 LK) 4400 PE (3.11 LK) 4500 PE (2.67 LK) 4600 PE (1.61 LK) 4700 PE (3.30 LK)
Nifty option series where NEGATIVE change in open interest was seen were 5300 CE (-5.51 LK) 5000 PE (-2.85 LK)
Outstanding open interest in Out of the Money Call Options stood at 4.57 Cr shares and that of Put Options stood at 4.49 Cr shares. Outstanding open interest in In the Money Call Options stood at 96.32 LK shares and that of Put Options stood at 1.42 Cr shares.
To conclude, nothing materially has changed to alter my bearish stance. We are in downward trending market and today was a day of short covering. If tomorrow market fails to sustain at higher levels, advice is to short sale the Nifty with adequate stop at 4945 and 5075.
Happy Trading
Atul Doshi
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