Day of Consolidation: January 18, 2012
Nifty January Futures pretty much traded in a band of 50 Rs. It closed at 4957.5 down by 19.5 points. Bank Nifty closed at 9026.40 down by 52.05 points. Volumes were overall lower than yesterday though we saw upsurge in volumes of individual stock futures probably due to results and might be some roll over. Open Interest in Nifty futures across all the series came down by 6.88 lakh shares and that in January Futures came down by 14 lakh shares indicating some profit booking or bull unwinding as happened in the markets. Put Call Ratio marginally came down to 1.13 from 1.16 level indicating sustained confidence in the market. Volatility as measured by India VIX was almost unchanged at 22.68 again instilling confidence in the market. Dollar Rupee pair too was trading lower at 50.65 in January Futures which is again a good sign.
Analysis of data reveals confidence in the market. In short term as long as Nifty is trading above 4850 level it is advisable to hold on your longs for profit objective of 5100 with stop below 4850. In long term though we are not completely out of woods and 5135 is crucial level to cross. If Nifty doesn’t move above 5135 in coming days, chances are there that we might make a new low which may be placed below 4550 levels. So let us watch price movements and other indicators very closely in coming days till expiry.
Top five individual stocks which gained today were BOMDYEING 10%, ADANIENT 8%, DELTACORP 7%, AREVAT&D 4% AND RELIANCE 4%.
Top five individual stocks which lost ground were ESSAROIL -12%, VOLTAS -11%, EKC -9%, KSOILS -8% and STRTECH -8%.
Top five individual stocks which attracted higher volumes were RELIANCE, SBIN, TCS, ICICIBANK and TATASTEEL.
Top five individual options which attracted higher activity today were TCS 1100 CE, RELIANCE 800 CE, RELIANCE 780 CE, TCS 1150 CE and TCS 1050 PE.
Nifty option series where POSITIVE change in open interest was seen were 5000 CE (1.92 LK) 5100 CE (8.49 LK) 4300 PE (2.82 LK) 4700 PE (8.26 LK) 4800 PE (7.83 LK) 4900 PE (9.19 LK)
Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-1.48 LK) 4800 CE (-1.66 LK) 4900 CE (-1.70 LK) 5200 CE (-2.17 LK) 5000 PE (-3.42 LK)
Outstanding open interest in Out of the Money Call Options stood at 2.51 Cr shares and that of Put Options stood at 5.36 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.08 Cr shares and that of Put Options stood at 53.32 Lk shares.
Happy Trading
Atul Doshi
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