Derivatives Daily Update: 19 January 2012

Bulls on Top: January 19, 2012

Nifty January Futures after opening strong remained strong through out the day and even closed stronger at 5022.05 up by 64.55 points. Bank Nifty too opened on a stronger note and closed stronger at 9201.65 up by 175.25 points. Volumes were higher on both Futures and Options segments of the market. Open Interest in Nifty Futures across all the series on consolidated basis was up by 15.56 lakh shares. Put Call Ratio too was up at 1.23 indicating strength in the markets as participants were busy writing Puts as against Calls. Volatility as measured by India VIX too was down by 4% at 21.68. Dollar Rupee pair was also trading lower at 50.45. All in all it was a day of Bull and we saw accumulation in positions on longer side.

As expressed in several earlier posts we are fast approaching level of 5050-5100. Once we reach there one should review his long positions as this is a resistance zone and if not decisively crossed might give a way for a fall. But as long as it holds 4850 level one should continue to hold with stop below 4850.

Top five individual stocks which gained today were ADANIENT 11%, VIPIND 11%, RELINFRA 10%, HDIL 10% and PANTALOON 9%.

Top five individual stocks which lost ground were DCHL -4%, LICHSGFIN -4%, RAYMOND -3%, IDEA -3% and BHEL -3%.

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

Top five individual options which attracted higher activity today were RELIANCE 800 CE, RELIANCE 780 PE, DLF 210 CE, SBIN 1900 CE and RELIANCE 800 PE.

Nifty option series where POSITIVE change in open interest was seen were 5200 CE (2.89 LK) 5300 CE (2.01 LK) 4800 PE (5.55 LK) 4900 PE (5.19 LK) 5000 PE (16.53 LK) 5100 PE (3.17 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 CE (-3.42 LK) 4900 CE (-7.45 LK) 5000 CE (-9.11 LK) 5100 CE (2.29 LK) 4100 PE (-1.27 LK) 4200 PE (-2.58 LK) 4500 PE (-1.85 LK) 4600 PE (-1.50 LK) 4700 PE (-8.07 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.80 Cr shares and that of Put Options stood at 5.52 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.49 Cr shares and that of Put Options stood at 29.53 Lk shares.

                                           

Happy Trading

Atul Doshi