Derivatives Daily Update: 23 January 2012

Listless Day: January 23, 2012

Nifty January Futures after opening weaker trade extremely in a narrow range for a day and closed at 5051.05 up by 3 .2 points. Bank Nifty too after trading in a small range closed up by 43.55 points at 9534.35. Volumes were lower than yesterday instead of fact that we are nearing expiry. Normally volume tends to be higher due to rollover. Open Interest in Nifty Futures across all the series was higher by 14.50 lakh shares on the days nearing expiry. Put Call Ratio was at 1.23 up from yesterday’s level. Volatility as measured by India VIX inched up higher by 1% at 22.14. Dollar Rupee pair was trading at 50.15. In all it was a listless day and movement in Individual stocks where Q3 results were coming saw some traction in activity.

My prognosis is still tilted towards markets inching up bit higher till expiry, probably towards 5135 levels but how it pans out in February series will have to be watched more closely and carefully. As said in yesterday’s post, possibility of market going in to consolidation phase is more likely as Volatility has come down much below its averages and it might retaliate and move towards its mean. If Nifty fails to clear resistance zone of 5125-5150 level and retraces back with vengeance, probability of making a new low still exist. Let us see what February Futures has in offing in coming days.

Top five individual stocks which gained today were JSWENERGY 9%, JISLJAL 7%, SUZLON 6%, MARUTI 6% and GUJFLUORO 5%.

Top five individual stocks which lost ground were STER -6%, ADNIPORTS -6%, RUCHISOYA -5%, MCDOWELL -5% and TULIP -5%.

Top five individual stocks which attracted higher volumes were LT, RELIANCE, SBIN, DLF and AXISBANK.

Top five individual options which attracted higher activity today were RELIANCE 800 CE, LT 1300 CE, RELIANCE 780 CE, LT 1200 PE and LT 1250 PE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (5.30 LK) 5000 CE (1.82 LK) 5100 CE (6.13 LK) 5200 CE (10.81 LK) 4900 PE (9.51 LK) 5000 PE (9.52 LK) 5100 PE (3.20 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 CE (-3.73 LK) 4600 PE (-1.33 LK) 4700 PE (-2.52 LK) 4800 PE (-3.34 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.90 Cr shares and that of Put Options stood at 5.64 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.21 Cr shares and that of Put Options stood at 41 Lk shares.

                                           

Happy Trading

Atul Doshi