Derivatives Daily Update: 31 January 2012

Reversal of Downtrend: January 31, 2012

Nifty February Futures after opening stronger continued its strength and wiped out entire loss of yesterday’s movement. It closed up by 111.20 points at 5223.35. Bank Nifty too saw complete turn around and it managed to close 402 points up at 9952.45. Volumes were higher than yesterday in both Futures & Option segments of the market. Open Interest in Nifty across all the three series was up by 11.07 lk shares. Bank Nifty too saw an upsurge in Open Interest by 1.38 lk shares. Put Call Ratio on consolidated basis across all the series and both Stocks & Index options was lower at 0.89 from 1.07 level of yesterday. Volatility as measured by India VIX was down by 3% at 22.66 and Dollar Rupee pair was marginally down at 49.78. In all there was a complete reversal of yesterday’s down trend and both the Indices marched there advances further.

As told yesterday, Nifty is consolidating between 5050-5250 zone and has managed to close above 5220. If strength continues tomorrow than we can fairly conclude that we have broken on higher side and hence we might see rise of 5 to 10 % from 5220 levels with some hurdle at 5402. One who is long should continue with their positions with stop placed below 5140 which is 200 DEMA.

Top five individual stocks which gained today were TATAGLOBAL 11%, IVRCLINFRA 9%, HAVELLS 9%, DELTACORP 9% and NCC 8%.

Top five individual stocks which lost ground were CROMGREAV -3%, COALINDIA -2%, ESSAROIL -2%, JSWENERGY -2% and SIEMENS -2%.

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

Top five individual options which attracted higher activity today were ICICIBANK 900 CE, ICICIBANK 880 CE, SBIN 2100 CE, ICICIBANK 920 CE and ICICIBANK 860 PE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (5.82 LK) 5400 CE (4.94 LK) 5500 CE (3.79 LK) 5600 CE (2.71 LK) 4700 PE (3.79 LK) 4900 PE (4.95 LK) 5000 PE (9.69 LK) 5100 PE (12.19 LK) 5200 PE (13.16 LK) 5300 PE (1.62 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-3.07 lk) 5200 ce (-1.19 lk)

Outstanding open interest in Out of the Money Call Options stood at 1.48 Cr shares and that of Put Options stood at 3.97 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.42 Cr shares and that of Put Options stood at 24.22 Lk shares.

                                           

Happy Trading

Atul Doshi