Resilient Day: 26 December 2011
Nifty December Futures after opening stronger remained stronger through out the day. It closed at 4787.70 up by 67.10 points. Intra day it managed to cross 4800 levels. Bank Nifty too followed the trend and closed at 8385.30 up by 92.85 points. Volumes were lower than yesterday notwithstanding, we are in last week of this expiry and rollover of trade is highly done in these days. Open Interest in Nifty on consolidated basis was up by meager 95 k shares. Put Call Ratio was up at 0.96 from 0.89 level of yesterday. Volatility as measured by India VIX came down to 26.60 from yesterday’s 27.29 level. Dollar Rupee was trading at 52.80 levels without much of activity. All in all it was a resilient day and some kind of short covering was witnessed in the market.
In my opinion, we are still not completely out of woods. As we can see from the data above, rise in price is not supported by volumes. It is not even supported by rise in Open Interest. In extremely short run as, we broke out of range of 4550 -4750 today; possibility of Nifty touching 4835 and 4905 has become a possibility. In slightly medium term it is difficult for Nifty to cross 5000 level. For positional long-term traders it is advisable to short the Nifty whenever you witness reluctance on part of Nifty to move higher. In my Opinion, for long term trader, Stop loss above 5135 is advisable.
Top five individual stocks which attracted higher volumes were SBIN, RELIANCE, ICICIBANK, TATASTEEL and AXISBANK.
Top five individual options which attracted higher activity today were SBIN 1700 CE, RELIANCE 760 CE, SBIN 1650 PE, TATASTEEL 360 CE and TATAMOTORS 190 CE.
Top five individual stocks which gained today were GVKPIL 9%, IFCI 7%, VIPIND 6%, DELTACORP and IDEA 5%.
Top five individual stocks which lost ground were BALRAMCHIN -6%, HEXAWARE -3%, GSPL -3%, CUMMINSIND -2% and OPTOCIRCUI -2%.
Nifty option series where POSITIVE change in open interest was seen were 4800 CE (9.24 LK) 4900 CE (5.65 LK) 4600 PE (7.72 LK) 4700 PE (15.12 LK) 4800 PE (16.33 LK) 4900 CE (3.20 LK)
Nifty option series where NEGATIVE change in open interest was seen were 4500 CE (-4.75 LK) 4600 CE (-7.67 LK) 4700 PE (-6.06 LK) 5100 CE (-2.87 LK) 5200 CE (-1.70 LK) 5600 CE (-1.20 LK) 4300 PE (-1.05 LK) 4400 PE (-10.54 LK).
Outstanding open interest in Out of the Money Call Options stood at 5.08 Cr shares and that of Put Options stood at 4.03 Cr shares. Outstanding open interest in In the Money Call Options stood at 73.90 LK shares and that of Put Options stood at 1.42 Cr shares.
Happy Trading
Atul Doshi
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