Derivatives Daily Update: 02 January 2012

Lackluster Day:  January 2, 2012

Nifty January Futures made lower top lower bottom today but managed to close marginally higher than yesterday at 4648.10 up by 13.7 points. Bank Nifty too made lower top lower bottom and closed at 8007.05 up by 62.75 points. Volumes were lower than yesterday in Index Futures and Options and were marginally higher in Stock Futures and Stock Options. Put Call Ratio came down to 0.86 from 1.06 indicating traders were busy writing Call Options and are not gung ho about the markets in near future. Volatility as measured by India VIX was higher by 2% at 27.53. Dollar Rupee duo was trading at 53.63 after making a high of 54.18 in January Futures. . All in all it was a dull day with negative bias in the market.

My prognosis still remains bearish as nothing on chart indicates sign of reversal though Nifty is taking support at its make or break levels of 4550. For extremely short term traders who want to punt on bull side 4590 and 4550 should be considered as stop loss. For long term positional traders hold on to your shorts with initial stop above 4810.

Top five individual stocks which attracted higher volumes were RELIANCE, SBIN, ICICIBANK, DLF and TATASTEEL.

Top five individual options which attracted higher activity today were RELIANCE 700 PE, SBIN 1700 CE, IFCI 25 CE SBIN 1600 PE and RELIANCE 700 CE.

Top five individual stocks which gained today were GVKPIL 8%, JSWSTEEL 7%, NATIONALUM 7%, ORCHIDCHEM 5% and GESHIP 4%.

Top five individual stocks which lost ground were BAJAJAUTO -8%, TVSMOTOR -8% DCHL -7% KSOIL -6% and SESAGOA -4%.

Nifty option series where POSITIVE change in open interest was seen were 4500 CE (2.92 LK) 4600 CE (3.95 LK) 4700 CE (4 LK) 4800 CE (3.56 LK) 4900 CE (4.01 LK) 5000 CE (3.05 LK) 5100 CE (1.32 LK) 5300 CE (1.05 LK) 4100 PE (6.61 LK) 4200 PE (3.49 LK) 4300 PE (5.38 LK) 4400 PE (7.79 LK) 4500 PE (5.27 LK) 4600 PE (5.60 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (-1 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.77 Cr shares and that of Put Options stood at 2.68 Cr shares. Outstanding open interest in In the Money Call Options stood at 42.75 LK shares and that of Put Options stood at 84.02 Lk shares.