Derivatives Daily Update: 09 January 2012

Listless Day: January 09, 2012

Amidst swing of nearly 75 points Nifty closed lower by 8.2 points at 4751.80. Bank Nifty too closed lower by 8.2 points at 8446.25. Volumes were lower compared to Friday. Open Interest in Nifty Futures across all the series came down by 3 lk shares. Put Call Ratio was 0.84 lower from Friday’s level. Volatility as measured by India VIX was almost unchanged at 25.68. Dollar Rupee pair was trading at 52.80. All in all it was a directionless market though choppiness was witnessed during today’s session.

Nifty is pretty much hovering in a range from quite a few days. It seems that this should break in couple of days. It is difficult to guess from data available on which side it will break. Participants are in a confused state of mind and are not able to judge trend in shorter term. Anyway as long as it is above 4665, there is a fair chance that we will break this level on upper side but will not be able to surpass 5000 levels and at the most 5125. So take your own view and trade in the market but with strict stops.

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

Top five individual options which attracted higher activity today were SBIN 1700 CE, SBIN 1750 CE, SBIN 1600 PE, SBIN 1650 CE and RELIANCE 740 CE.

Top five individual stocks which gained today were MERCATOR 11%, LITL 10%, ONMOBILE 10%, IBREALEST 9% and FSL 9%.

Top five individual stocks which lost ground were SINTEX -4%, JISLJAL -4%, BHARTIARTL -3%, NMDC -3% and MCDOWELL -3%.

Nifty option series where POSITIVE change in open interest was seen were 4700 CE (2.29 LK) 4800 CE (5.03 LK) 4900 CE (5.35 LK) 5000 CE (2.77 LK) 5100 CE (3.20 LK) 3900 PE (1.18 LK)  4000 PE (3.65 LK) 4100 PE (1.33 LK) 4400 PE (4.54 LK) 4500 PE (1.43 LK) 4600 PE (3.74 LK) 4700 PE (4.46 LK) 4800 PE (1.39 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4300 PE (-4.28 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.97 Cr shares and that of Put Options stood at 3.85 Cr shares. Outstanding open interest in In the Money Call Options stood at 66 LK shares and that of Put Options stood at 67.74 Lk shares.

Happy Trading

Atul Doshi