Derivatives Daily Update: February 29, 2012

Range Bound Session: February 29, 2012

Nifty March Futures closed marginally lower by 2 points at 5439.50. Bank Nifty closed lower by 110.40 points at 10519.80. Volumes were higher than yesterday in both Futures and Options segment of the market. Open Interest in Nifty across all series saw an improvement by 6 lakh shares at 2.79 Cr shares. Put Call Ratio was fairly stable at 1.05. Volatility as measured by India VIX was up by 4% at 26.93. Dollar Rupee pair was trading at 49.33 slightly lower from yesterday’s levels. In nutshell it seems that we are consolidating in a range waiting for some event to break this range.

My prognosis still remains bullish for medium to longer term period. In short term we might correct little more as we face stiff resistance at higher levels, also as we have broken lower end of trend channel which is placed at 5485, there is possibility that we might see 5265. While we might drift to this level, it is difficult that we will break 5175 as it coincides with long term averages and it is bound to find good amount of support at that level. My advice is to trade on longer side as structure of Nifty chart on bit longer term suggests we might make a new high in coming days. Mind you Stop loss is must for any trader.

Top five individual stocks which gained today were BGRENERGY 10%, PANTALOONR 9%, ANDHRABANK 8%, JSWISPAT 8% and ROLTA 7%.

Top five individual stocks which lost ground were GITANJALI -5%, MCDOWELL -4%, INDIAINFO -4%, SRTRANSFIN -4% LT -3%.

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

Top five individual options which attracted higher activity today were RELIANCE 840 CE, SBIN 2400 CE, SBIN 2500 CE, SBIN 2300 CE and SBIN 2200 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (2.06 LK) 5600 CE (5.30 LK) 5700 CE (3.34 LK) 5800 CE (1.59 LK) 5900 CE (2.42 LK) 6000 CE (1.45 LK) 4600 PE (1.95 LK) 4700 PE (2.35 LK) 4800 PE (2.04 LK) 4900 PE (5.50 LK) 5000 PE (5.04 LK) 5100 PE (1.22 LK) 5200 PE (3.78 LK) 5300 PE (4.72 LK) 5500 PE (2.70 LK)

Nifty option series where NEGATIVE change in open interest was seen were (NO CHANGE ABOVE 1 LK WAS SEEN)

Outstanding open interest in Out of the Money Call Options stood at 2.27 Cr shares and that of Put Options stood at 4.27 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.03 Cr shares and that of Put Options stood at 61.11 Lk shares. Put Call Ratio of current series alone stands at 1.48.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 28, 2012

Smart Recovery: February 28, 2012

Nifty March Futures smartly recovered today and closed at 5441.50 up by 102.90 points. Bank Nifty too closed higher at 10630.20 up by 416.30 points. Volumes were slightly lower than yesterday. Open Interest in Nifty across all the series improved by 7.75 lakh shares and stood at 2.73 Cr shares. Put Call Ratio was comfortable at 1.10 slightly up from yesterday’s level. Volatility as measured by India VIX was fairly stable at 25.85 down by 6%. Dollar Rupee pair was trading bit higher at 49.46. All in all markets were able to recover from yesterday’s shock and it seems that much needed correction ended yesterday.

In my opinion, upward journey again has resumed but some confirmation in form of sustainable higher closing will confirm that. If we are able to trade comfortably in this range of 5450 – 5650 for few more days, we will probably break above this range and might see all time high. But finger crossed as the whole month is eventful and let us see what it has to offer us in coming days.

Top five individual stocks which gained today were TATAMTRDVR 14%, LITL 12%, HDIL 12%, IFCI 10% and BGRENERGY 9%.

Top five individual stocks which lost ground were CAIRN -3%, TCS -2%, BPCL -1%, ABB -1% and WIPRO -1%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, LT, HDIL and TATAMOTORS.

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2400 CE, SBIN 2200 CE, SBIN 2200 PE and SBIN 2100 PE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (1.07 LK) 5500 CE (2.69 LK) 5600 CE (1.83 LK) 5700 CE (2.39 LK) 5800 CE (3.67 LK) 5900 CE (3.94 LK) 6000 CE (3.52 LK) 4500 PE (1.77 LK) 4800 PE (2.95 LK) 4900 PE (2.38 LK) 5200 PE (10.98 LK) 5300 PE (2.79 LK) 5400 PE (4.79 LK) 5500 PE (1.96 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5700 PE (1.47 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.18 Cr shares and that of Put Options stood at 4.15 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.01 Cr shares and that of Put Options stood at 57.96 Lk shares. Put Call Ratio of current series alone stands at 1.48.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 27, 2012

Correction Deepens: February 27, 2012

Nifty March Futures closed drastically lower at 5338.60 down by 148.85 points. Bank Nifty too closed at 10213.90 down by 394.80 points. Momentum which we saw in last series is dying from very first day of the new series. Today was the second day in new series which has closed lower. Volumes were higher than yesterday that too on a down day. Open Interest in Nifty across all the series stood at 2.65 Cr down by 4.50 lakh shares indicating some profit booking witnessed in the market. Put Call Ratio too was marginally down to 1.04 from 1.1 level of yesterday again indicating some worry on part of the Options writers. Volatility has shot up by 10% to 27.38 which again is a bad sign as it shows participants are becoming jittery about the market. Dollar Rupee pair was trading marginally higher at 49.05. All in all it was a day of consolidation of bull trend but it seems some confidence was shaken up and markets were trading with downward bias.

In my opinion, range that Nifty was trading has broken on down side at if this trend continues which now seems very likely we might go and test 5180 level which is long term moving average. I feel that market should take support between 5180 and 5350 as structure of Nifty’s chart is still very bullish. Bulls must have stopped out today but if tomorrow markets start moving up it is advisable to buy with stop below 5200 level.

Top five individual stocks which gained today were BPCL 2%, JINDALSAW 2%, CIPLA 2%, HINDPETRO 1% and ARVIND 1%.

Top five individual stocks which lost ground were LITL -10%, SESAGOA -10%, FSL -10%, ADANIPOWER -9% and SINTEX -8%.

Top five individual stocks which attracted higher volumes were SBIN, STER, RELIANCE, ICICIBANK and SESAGOA.

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2400 CE, RELIANCE 820 CE, RELIANCE 840 CE and SBIN 2200 CE.

Nifty option series where POSITIVE change in open interest was seen were 5200 CE (2.66 LK) 5300 CE (3.64 LK) 5400 CE (6.93 LK) 5500 CE (7.33 LK) 5600 CE (11.29 LK) 5800 CE (1.25 LK) 5900 CE (3.78 LK) 6000 CE (2.20 LK) 4400 PE (1.60 LK) 4600 PE (2.67 LK) 4700 PE (2.86 LK) 4800 PE (3.31 LK) 4900 PE (3.27 LK) 5000 PE (9.86 LK) 5100 PE (2.92 LK) 5200 PE (15.13 LK) 5300 PE (10.36 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5700 CE (1.94 LK) 5400 PE (1.69 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.28 Cr shares and that of Put Options stood at 3.62 Cr shares. Outstanding open interest in In the Money Call Options stood at 77.11 LK shares and that of Put Options stood at 98.75 Lk shares. Put Call Ratio of current series alone stands at 1.51.

Happy Trading 

Atul Doshi

Derivatives Daily Update: February 24, 2012

March Series - Lackluster Opening : February 24, 2012.

Nifty March Series wiped off entire premium and closed absolutely flat at 5487.45. Bank Nifty closed lower at 10608.70 down by 104.45 points. Volumes were obviously lower than yesterday due to rollover effect. Open Interest in Nifty Futures across all series stood at 2.69 Cr shares. Bank Nifty Open Interest stood at 11.94 LK shares. Put Call Ratio was 1.17 higher than yesterday. Volatility as measured by India VIX was 24.82 up by 2%. Dollar rupee trade was trading lower at 48.95. All in all it was a lackluster opening and correction that started 2 days back continued today also.

As said in yesterday’s post we are trading broadly in a range of 5450-5650 and will continue to do so for couple of days. In my opinion, structure of Nifty is bullish at least in short term to medium term and with some correction price wise and time wise we should be able to break the range on higher side. Only caveat being that we don’t drastically breakdown and drift lower than 5200. Till that time trade the range and accumulate some profits.

Top five individual stocks which gained today were OFSS 17%, DHANBANK 8%, ZEEL 6%, GODREJIND 5% and IBREALEST 5%.

Top five individual stocks which lost ground were KSOIL -10%, ARVIND -6%, ABB -6%, EKC -6% TATACOMM -6%.

Top five individual stocks which attracted higher volumes were SBIN, HDFC, ICICIBANK, TATASTEEL and STER.

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2400 CE, HDFC 700 CE, SBIN 2500 CE and SBIN 2200 PE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (4.25 LK) 5600 CE (2.65 LK) 5700 CE (6.36 LK) 5800 CE (4.66 LK) 6000 CE (4.66 LK) 6200 CE (1.39 LK) 4700 PE (1.63 LK) 4800 PE (3.19 LK) 4900 PE (1.57 LK) 5000 PE (3.29 LK) 5100 PE (3.55 LK) 5200 PE (5.70 LK) 5300 PE (8.34 LK) 5400 (2.94 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5300 CE (60 K) 4000 PE (87 K)

Outstanding open interest in Out of the Money Call Options stood at 1.76 Cr shares and that of Put Options stood at 3.48 Cr shares. Outstanding open interest in In the Money Call Options stood at 89.38 LK shares and that of Put Options stood at 61.40 Lk shares. Put Call Ratio of current series alone stands at 1.54.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 23, 2012

Correction Day 2: February 23, 2012

Nifty February Futures closed at 5488.25 down by 29.85 points. Bank Nifty too closed lower at 10713.15 down by 58.85 points. Volumes were obviously higher due to expiry and rollover activity. Open Interest was in Nifty Futures was higher by 1 lakh shares but it is not comparable as Nifty February Futures expired today. Any way Nifty Open Interest figure for March series stood at 2.39 Cr shares. Put Call Ratio was steady at 1.13 though marginally down from yesterday’s level. Volatility as measured by India VIX has come down by 10% at 24.33. Dollar Rupee pair was at 49.23 marginally down. All in all today was second day of correction. Let us see what March Series has in offing for us.

Structure of market seems good and on short term basis any dip warrants some buying opportunities. We are in to consolidation phase and after consolidating for few sessions if we start moving higher, I feel that we will make new high in coming days but for that it has to clear 5650 level decisively and sustainably.  Till that time we are in a trading range of 200 points from 5450 to 5650.

Top five individual stocks which gained today were FSL 20%, VOLTAS 8%, LITL 8%, JUBLFOOD 7% and BPCL 6%.

Top five individual stocks which lost ground were SOBHA -7%, JPASSOCIAT -7%, HDIL -6%, BALRAMCHIN -5% and RELCAPITAL -5%.

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

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2250 PE, SBIN 2350 CE, SBIN 2300 PE and 2200 PE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (21.15 LK) 5600 CE (20.72 LK) 5400 PE (37.02 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (1 LK) 4800 CE (1.10 LK) 5200 CE (1.50 LK) 5300 CE (1.20 LK) 5400 CE (3.03 LK) 5700 CE (4.03 LK) 4900 PE (1.66 LK) 5000 PE (1.86 LK) 5200 PE (1.62 LK) 5500 PE (16.29 LK) 5600 PE (33.12 LK) 5700 PE (5.31 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.49 Cr shares and that of Put Options stood at 5 Cr shares. Outstanding open interest in In the Money Call Options stood at 45.29 LK shares and that of Put Options stood at 44.87 LK shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 22, 2012

Correction Day: February 22, 2012

Nifty February Futures closed at 5518.10 down by 104.05 points. Bank Nifty too closed lower at 10772 down by 430.15 points. Volumes were obviously higher due to rollover in new series. Open Interest saw a whooping rise by 60 lakh shares across all the series indicating short built up. Put Call Ratio also came down to 1.20 from 1.30 levels. Volatility as measured by India VIX was up by 2% at 26.80. Dollar Rupee pair was trading almost unchanged at 49.37. All in all it seems that correction has set in. Only worry to me seems to be huge built up in Nifty positions that too in falling markets.

In my opinion, if correction deepens tomorrow it will be definitely worrisome. As said in several earlier post that 5650 is sacrosanct level and if we are not able to clear this level, market has potential to drift lower to below earlier low. Though still this are early days and such scary scenario is not warranted right now. If after giving due respect to correction markets starts moving up and clears 5650 in couple of days we will make a higher high. So advice is to watch screen very closely as new series is full of events. It is advisable to protect your positions by buying puts.

Top five individual stocks which gained today were TATACOMM 7%, FSL 6%, GITANJALI 3%, SUNTV 3% and IGL 3%.

Top five individual stocks which lost ground were LITL -16%, MCDOWELL -14%, IRB -12%, VIPIND -12% and GMRINFRA -12%.

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

Top five individual options which attracted higher activity today were SBIN 2400 CE, SBIN 2300 PE, SBIN 2350 CE, SBIN 2450 CE and SBIN 2500 CE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (17.73 LK) 5600 CE (14.26 LK) 5700 CE (14.73 LK) 5800 CE (2.02 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 PE (1,20 LK) 5000 CE (1.23 LK) 5400 CE 94.68 LK) 5900 CE (1.40 LK) 4600 PE (1.02 LK) 4700 PE (3.48 LK) 4800 PE (2.47 LK) 4900 PE (1.79 LK) 5000 PE (1.42 LK) 5100 PE (2.03 LK) 5200 PE (1.91 LK) 5300 PE (1 LK) 5400 PE (2.13 LK) 5500 PE (8.71 LK) 5600 PE (9.51 LK) 5700 PE (2.27 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.69 Cr shares and that of Put Options stood at 5.25 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.17 Cr shares and that of Put Options stood at 56.83 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 21, 2012

Resilient market: February 21, 2012

Nifty February Futures closed at 5622.15 up by 32.55 points. Bank Nifty closed at 11202.15 up by 79.55 points. Volumes were more or less better though slightly lower than yesterday. Open Interest in Nifty Futures across all the series was up by 14 lk shares. Put Call Ratio was better than yesterday at 1.22. Volatility as measured by India VIX was ruling at 26.25 up by 9%. Dollar Rupee pair was almost unchanged at 49.37. All in all it was a resilient day though some caution is warranted as Volatility is steadily increasing. It seems that Bulls are active in the market as still they are writing puts against calls.

It seems that momentum will continue and once we decisively close above 5650, Nifty may touch its all time high in near future. But mind you we are at inflection point which equally has a potential to reject upward momentum and start trading lower. My advice is to book some profit around this level and ride the bull momentum for rest of the positions.

Top five individual stocks which gained today were FSL 20%, KSOIL 13%, UNITECH 13%, GODREHIND 11% and HINOILEXP 9%.

Top five individual stocks which lost ground were STER -4%, GSPL -3%, PFC -3%, RUCHISOYA -3% and RECLTD -3%.

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

Top five individual options which attracted higher activity today were TATASTEEL 500 CE, RELIANCE 840 CE, SBIN 2500 CE, RELIANCE 820 CE and BHARTIARTL 360 CE.

Nifty option series where POSITIVE change in open interest was seen were 5700 CE (7.22 LK) 5900 CE (3.99 LK) 5400 PE (6.65 LK) 5500 PE (2.73 LK) 5600 PE (12.01 LK) 5700 PE (3.17 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4500 CE (-1.13 LK) 5100 CE (1.41 LK) 5200 CE (1.53 LK) 5300 CE (1.69 LK) 5400 CE (4.45 LK) 5500 CE (8.40 LK) 5800 CE 93.61 LK) 4700 PE (3.13 LK) 4800 PE (1.47 LK) 5100 PE (1.01 LK) 5200 PE (3.77 LK) 5300 PE (1.82 LK)

Outstanding open interest in Out of the Money Call Options stood at 93.69 LK shares and that of Put Options stood at 6.22 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.73 Cr shares and that of Put Options stood at 13.10 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 17, 2012

Moving Ahead: February 17, 2012

Nifty February Futures continued its upward journey and closed at 5589.60 up by 51.80 points. Bank Nifty too closed at 11122.60 up by 174.50 points. Volumes were higher than yesterday partly due to momentum and partly due to roll over in to new series. Open Interest in Nifty Futures across all the series saw an increase of 3.99 lakh shares. February future saw reduction of 17 lakh series and March series saw increase by nearly 20 lakh shares. Put Call Ratio was bit lower at 1.17. Volatility as measured by India VIX was 24.18 up by 4%. Dollar Rupee pair was trading flat at 49.37 with fairly no change. All in all momentum was good in the market and Nifty continued with its upward surge flawlessly.

I feel we are bang on target and Nifty almost reached its upward target of 5650 as I am being saying it from several days. It seems that momentum will continue and once we decisively close above 5650, Nifty may touch its all time high in near future. But mind you we are at inflection point which equally has a potential to reject upward momentum and start trading lower. My advice is to book some profit around this level and ride the bull momentum for rest of the positions.

Top five individual stocks which gained today were MTNL 18%, LITL 11%, BGRENERGY 9%, JSWENERGY 9% and TITAN 8%.

Top five individual stocks which lost ground were TULIP -6%, JETAIRWAYS -5%, GTOFFSHORE -5%, DISHTV -5% and UNIPHOS -4%.

Top five individual stocks which attracted higher volumes were SBIN, BHEL, RELIANCE, LT and SESAGOA.

Top five individual options which attracted higher activity today were SBIN 2500 CE, SBIN 2400 CE, RELIANCE 820 CE, SBIN 2450 CE and 2400 PE.

Nifty option series where POSITIVE change in open interest was seen were 5800 CE (12.05 LK) 5900 CE (10.94 LK) 5500 PE (5.62 LK) 5600 PE (27.24 LK) 5700 PE (4.06 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5000 CE (-1.68 LK) 5100 CE (-1.35 LK) 5200 CE (-3.13 LK) 5300 CE (-3.52 LK) 5400 CE (-8.69 LK) 5500 CE (-6.12 LK) 4800 PE (-1.20 LK) 5000 PE (-1.50 LK) 5100 PE (-2.35 LK) 5300 PE (6.08 LK) 5400 PE (-7.57 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.45 Cr shares and that of Put Options stood at 5.67 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.38 Cr shares and that of Put Options stood at 59 Lk shares.

Happy Trading 

 Atul Doshi

Derivatives Daily Update: February 16, 2012

Day of Consolidation: February 16, 2012

Nifty February Futures more or less traded in yesterday’s range and closed at 5537.80 down by 14.75 points. Bank Nifty too followed the trend by remaining in yesterday’s range and closed at 10948.10 down by 23.15 points. Volumes were lower than yesterday though Stock Futures saw increase in volumes perhaps due to some early birds shifting their positions in to March Series. Open Interest was marginally lower by 1.64 lakh shares and stood at 2.97 Cr shares. Put Call Ratio was further up to 1.27 from 1.16 levels indicating participants are comfortable with momentum and they don’t mind writing puts against calls. Volatility as measured by India VIX shot up to 23.33 from 22.1 up by nearly 6%. Dollar Rupee pair fairly remained stable at 49.39. All in all it seems that markets are consolidating after huge run and will resume its uptrend once consolidation is over.

I believe that in short term we are headed towards 5650 levels and  their we might pause for a while and if no great supply comes at that level we might continue with uptrend. Once we cross that level comfortably and sustainably, every dip after that will be an opportunity to buy as than ground will be clear to achieve earlier top and we might attempt to go beyond the earlier high and make a new high. Alternatively if we fail to clear this level and fall miserably and go below 5150 level than possibility of touching a new low is very much alive. All I mean to say is that we are at such an inflection point where both the possibilities exist. Watch the markets very carefully as coming series is full of events including Budget and State elections.

Top five individual stocks which gained today were IFCI 12%, SCI 11%, KTKBANK 9%, HDIL 8% and DCHL 8%.

Top five individual stocks which lost ground were COALINDIA -6%, VOLTAS -6%, HINDALCO -55, INDUSINDBK -5% and ZEEL -4%.

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

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2400 CE, SBIN 2200 PE, SBIN 2350 CE and RELIANCE 840 CE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (4.93 LK) 5600 CE (7.50 LK) 4400 PE (7.17 LK) 4900 PE (1.30 LK) 5300 PE (8.64 LK) 5400 PE (9.10 LK) 5500 PE (5,46 LK) 5600 PE 92.44 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (-1.02 LK) 5300 CE (-1.35 LK) 5400 CE (-2.42 LK) 5700 CE (-4.08 LK) 5000 PE (-2.11 LK) 5100 PE (1.44 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.29 Cr shares and that of Put Options stood at 6.03 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.70 Cr shares and that of Put Options stood at 87.28 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 15, 2012

Bull Ride Continues: February 15, 2012

Nifty February Futures smartly closed at 5552.55 up by 112.20 points. Bank Nifty closed at 10971.25 up by 382.10 points. Volumes were hugely higher than yesterday both on Futures and Options segment of the market, more so on Options segment. There was huge built up in long positions as Open Interest in Nifty across all the series was up by 15 lakh shares and stood at 2.99 Cr shares. Bank Nifty saw short covering as its Open Interest came down by 3.40 lakh shares. Put Call Ratio was smartly up to 1.22 from 1.13 levels of yesterday, indicating strength and confidence among the market participants. Volatility as measured by India VIX was down by 3% and closed at 22.10 again indicating stability in market. Dollar Rupee pair was trading lower by few notch at 49.37. All in all it was a brilliant day for Bulls and Bulls responded the same by mopping up positions.

My prognosis that we are heading for 5650 is strongly vindicated today. If we assume that we are in bear trend which started from 6349 and temporarily stopped at 4538 and we take maximum Fibonacci retracement level of 61.8 %, it comes at 5650. So this level of 5650 is a sacrosanct level which in a way will decide whether bear trend has ended or it will once again resume. To put it very simply, if we are not able to decisively trade above 5650 levels for few days, there is possibility that bear trend will resume. Alternatively if we assume that we are in a secular bull trend which started from 2238 and stopped at 6349 and we take another important Fibonacci retracement level of 50% it comes around 4450 level which we almost touched some few days back, meaning thereby that we are still in bull market and the likely correction has happened and bull trend has again resumed. So coming few days will decide the secular trend and accordingly we might witness new high or alternatively new low in calendar year 2012.

Top five individual stocks which gained today were VOLTAS 25%, GTOFFSORE 20%, ADANIPOWER 17%, 3IINFOTECH 14% and INDIACEM 13%.

Top five individual stocks which lost ground were EDUCOMP -5%, ALOKTEXT -4%, TTKPRESTIG -3%, MERCATOR -3% and SOUTHBANK -2%.

Top five individual stocks which attracted higher volumes were TATAMOTORS, SBIN, ICICIBANK, AXISBANK and TATASTEEL.

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2200 CE, TATAMOTORS 290 CE, SBIN 2250 CE and SBIN 2200 PE.

Nifty option series where POSITIVE change in open interest was seen were 5600 CE (11.58 LK) 5700 CE 917.65 LK) 5800 CE (2.42 LK) 5300 PE (2.34 LK) 5400 PE (7.79 LK) 5500 PE (33 LK) 5600 PE (14.88 LK) 5700 PE (1.06 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (5.57 LK) 5300 CE (7.30 LK) 5400 CE (13.70 LK) 5500 CE (19.95 LK) 4700 PE (1.96 PE (1.96 LK) 4900 PE (2.63 LK) 5000 PE (2.63 LK) 5100 PE (9.43 LK) 5200 PE (1.64 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.27 Cr shares and that of Put Options stood at 5.89 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.77 Cr shares and that of Put Options stood at 26.66 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 14, 2012

Valentine for Bulls: February 14, 2012

Nifty February Futures closed at 5440.35 up by 22.35 points. Bank Nifty closed at 10589.15 up by 65.65 points. Volumes were lower than yesterday in both Futures & Options segment of the market. Open Interest also did not saw any remarkable movements. It decreased by 66 k shares at 2.84 Cr shares. Put Call Ratio came down to 1.08 from 1.20 level. Volatility as measured by India VIX was lower by 4% at 22.71. Dollar Rupee pair was trading marginally higher at 49.43. All in all it was a day for Bulls who were able to buy nice gift for their valentine.

It was a good day for Bulls. Nifty February Futures finally broke the recent high and made a new high of 5454. As said in earlier several posts, it seems that we are heading towards 5650 level. Though for record’s sake this 5450 level is bit crucial as Nifty has made tops near this level. Once we decisively trade above 5450 level in coming days we will hit the target of 5650. This confidence comes from the fact that Nifty is trading much above its short term to long term moving averages. Advice is to remain long with requisite stop loss.

Top five individual stocks which gained today were LITL 19%, APIL 10%, MERCATOR 10%, HCC 9% and JISLJAL 9%.

Top five individual stocks which lost ground were CIPLA -6% ADANIENT -5%, NEYVELLILIG -5%, SREIINFRA -4% and TTKPRESTIG -3%.

Top five individual stocks which attracted higher volumes were SBIN, TATAMOTORS, TATASTEEL, HDIL and ICICIBANK.

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2100 PE, SBIN 2300 CE, SBIN 2000 PE and SBIN 2250 CE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (1.56 LK) 5600 CE (2.59 LK) 5700 CE (1.60 LK) 5800 CE (1.05 LK) 6400 CE (1 LK) 5100 PE (3.74 LK) 5200 PE (1.51 LK) 5300 PE (6.80 LK) 5400 PE (15.36 LK) 5500 PE (3.89 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (-2.38 LK) 5300 CE (2.51 LK) 5400 CE (4.27 LK) 4700 PE (2.46 LK) 4900 PE (1.20 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.70 Cr shares and that of Put Options stood at 5.64 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.61 Cr shares and that of Put Options stood at 31 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 13, 2012

Better Day: February 13, 2012

Nifty February Futures closed at 5418 up by 20.35 points. Bank Nifty closed at 10523.5 up by 58.30 points. Volumes were lower than yesterday on both Futures and Options segment. Open Interest came down by 2.94 lakh shares at 2.85 Cr shares. Bank Nifty Open Interest too came down by 1.67 lakh shares and stood at 22.73 lakh shares. Put Call Ratio improved to 1.27 from 1.15 levels showing some strength in market. Volatility Index as measured by India VIX was marginally down to 23.71. Dollar Rupee Pair was trading marginally lower at 49.38. All in all it was a day of consolidation as Nifty hover

 around 5400 levels with upward bias in the end.

Analysis of price behavior suggests that we are heading for higher levels as Nifty is not falling substantially and bounces back very fast. Though some traditional indicators like MACD and RSI show some kind of divergence indicating we might correct a bit but that correction is coming only intra day. My advice is as long as Nifty doesn’t break substantially that is till it holds 5300 one needs to remain bullish. If one is worried a bit as it is not crossing 5450 one can by protection by buying some puts.

Top five individual stocks which gained today were NCC 8%, MCLEODRUSS 6%, ONMOBILE 6%, GITANJALI 6% and FINANTECH 5%.

Top five individual stocks which lost ground were SUZLON -8%, PANTALOON -7%, SUNTV -6%, ADANIENT -6% and BOMDYEING -5%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2100 PE, SBIN 2000 PE, SBIN 2150 CE and SBIN 2300 CE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (2.30 LK) 5500 CE (2.59 LK) 5600 CE (2.01 LK) 5100 PE (3.62 LK) 5200 PE (3.20 LK) 5300 PE (9.55 LK) 5400 CE (6 LK) 5500 (3.40 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-1.72 LK) 5200 CE (1.67 LK) 5300 CE (2.51 LK) 4600 PE (1.22 LK) 4700 PE (1.43 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.64 Cr shares and that of Put Options stood at 5.58 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.73 Cr shares and that of Put Options stood at 27 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: 10.02.2012

Day of Consolidation: February 10, 2012

Nifty February Futures closed at 5397.65 down by 39.40 points. Bank Nifty closed at 10465.20 down by 86.35 points. Volumes were higher on both Futures and Options segment of the market. Open Interest in Nifty Futures across all the series came down by 8.90 lk shares and stood at 2.88 Cr shares. Put Call Ratio was at 1.10 slightly lower from yesterday’s level. Volatility as measured by India VIX was ruling at 23.93 up by nearly 2%. Dollar rupee pair was almost unchanged at 49.63. All in all it was a day of consolidation and higher level attracted some profit booking as reflected by reduction in Open Interest as well as reduction in Put Call Ratio.

My prognosis remains that of bullish scenario but it needs to be supported by upward price movement above 5400 or it should not significantly break down as still 5400 level is sacrosanct level and carries significant importance. There are two schools of thought. Those who believe that we are in a bear market argue that the bear trend which started roughly from 6300 to 4500 has probability of correcting up to 5400 which is 50% retracement or 5650 which is 61.8% retracement. If it is unable to survive this level bear trend will again resume which might take us below the low we made around 4500 levels. Another class which thinks that we are structurally in Bull market which started from 2500 odd level made a top at 6350 level and has corrected less than 50%which has ended at 4500 and uptrend has again resumed which will help in breaking the earlier high and make a new high above 6350 levels.  For both the schools this range of 5400 -5650 is very important. My advice is to trade cautiously with upward bias but buying protection is very important.

Top five individual stocks which gained today were JINDALSAW 9%,, MRF 8%, IFCI 7%, POLARIS 7% and CUMMINSIND 7%.

Top five individual stocks which lost ground were AUROPHARMA -6%, HOTELEELA -6%, VIPIND -5%, IVRCLINFRA -5% and IBREALEST -5%.

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

Top five individual options which attracted higher activity today were TATAATEEL 480 CE, TATASTEEL 440 PE, TATASTEEL 500 CE, TATASTEEL 460 CE and TATASTEEL 460 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (4.80 LK) 5500 CE ( 9.51 LK) 5600 CE (7.21 LK) 5700 CE (5.02 LK) 5200 PE (2.59 LK) 5300 PE (2.86 LK) 5400 PE (7.22 LK).

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-1.04 LK) 5200 CE (-2.57 LK) 5300 CE (2.19 LK) 6100 CE (-1.59 LK) 4500 PE (-1 LK) 4700 PE (-1.23 LK) 4800 PE (-1.21 LK) 5000 PE (2.91 LK) 5100 PE (-1.73 LK) 5500 PE (-1.63 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.22 Cr shares and that of Put Options stood at 4.99 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.22 Cr shares and that of Put Options stood at 72.85 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 9, 2012

Breakout Day: February 9, 2012

Nifty February Futures finally broke crucial level of 5400 by closing above the same at 5437.05 up by 48.55 points. Bank Nifty too followed the streak and closed at 10551.55 up by 210.15 points. Volumes were lower than yesterday as we saw traction and breakout in last ½ hour of trading. Open Interest saw an up tick by 7.24 lk shares at 2.97 Cr shares across all the open series. Put Call Ratio too saw a up tick and was at 1.21 showing participants were confident that market will go up as they wrote more puts against calls. Volatility as measured by India VIX was muted as it came down by 4% at 23.30. Dollar Rupee pair was trading at 49.65. All in all we can fairly construe that breakout that we were waiting for has finally happened.

As said yesterday, if Nifty manages to break 5400 level in its third attempt and closes above 5400, probability of its touching 5650 will become more evident. My advice for traders is to hold on your longs as long as Nifty comfortably trades above 5400. Even if it breaks 5400 again, please don’t panic and wait till you see level of 5300. Exit only if it breaks 5200 with a promise to reenter again if it starts moving up once again. To make it simpler it seems that new uptrend has started and every fall will give you an opportunity to buy which you should utilize properly.

Top five individual stocks which gained today were DHANBANK 18%, EKC 13%, HCC 12%, HOTELEELA 11% and JUBLFOOD 10%.

Top five individual stocks which lost ground were ADANIENT -5%, ADANIPOWER -3%, SRTRANSFIN -3%, INDIAINFO -2% and AUROPHARMA -2%.

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

Top five individual options which attracted higher activity today were TATASTEEL 460 CE, HINDALCO 160 CE, TATASTEEL 440 PE, SBIN 2200 CE and ICICIBANK 940 CE.

Nifty option series where POSITIVE change in open interest was seen were 5600 CE (1.39 LK) 5700 CE (3.21 LK) 5800 CE (1.29 LK) 5000 PE (4.40 LK) 5100 PE (1.01 LK) 5300 PE (11.98 LK) 5400 PE (11.75 LK) 5500 PE (1.91 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5000 CE (1.17 LK) 5200 CE (1.34 LK) 5300 CE (2.07 LK) 5400 CE (1.89 LK) 4400 PE (1.66 LK) 4900 PE (8.23 LK) 5200 PE (3.74 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.47 Cr shares and that of Put Options stood at 5.62 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.87 Cr shares and that of Put Options stood at 24 Lk shares

Derivatives Daily Update: 08.02.2012

Upward Bias Continues: February 8, 2012

Nifty February Futures closed up by 33.30 points at 5388.50 after making higher top higher bottom formation. Bank Nifty closed 10.8 points higher at 10341.40. Volumes on both Futures and Options segment were higher than yesterday. Open Interest in Nifty Futures across all the series was higher by 4.78 lk shares at 2.89 Cr shares. Put Call Ratio was marginally lower at 1.14. Volatility as measured by India VIX was lower by 2.5% at 24.27. Dollar Rupee pair was trading slightly higher at 49.38. All in all markets are consolidating with an upward bias.

As can be viewed from today’s data Nifty is attempting to move higher and making a higher high but is not closing above 5400. Equally it is not breaking on lower side either. In such scenario it is advisable to hold on your longs as third successful attempt to move beyond 5400 will possibly take Nifty to 5650 levels. Till the time it finally breaks 5400 on closing basis keep strong stop loss probably below 5300 in extremely short term and 5200 in medium term. Enjoy the Bull Run till that time.

Top five individual stocks which gained today were JSWENERGY 10%, JINDALSWHL 10%, RELCAPITAL 10%, HEXAWARE 10% and IFCI 9%.

Top five individual stocks which lost ground were ORCHIDCHEM -9%, BHARTIAIRTL -7%, KFA -5%, TRIVENI -4% and JETAIRWAYS -3%.

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

Top five individual options which attracted higher activity today were IFCI 35 CE, RELIANCE 860 CE, BHARTIAIRTL 380 CE, SBIN 2200 CE and TATASTEEL 460 CE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (1.52 LK) 5400 CE (1.80 LK) 5500 CE (11.06 LK) 5600 CE (3.09 LK) 5700 CE (2.58 LK) 5100 PE (1.91 LK) 5200 PE (4.43 LK) 5300 PE (8.65 LK) 5400 PE (6.39 LK) 5500 PE (2.74 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-1.45 LK) 4800 PE (-1.15 LK) 4900 PE (-4.85 LK) 5000 PE (-1.33 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.05 Cr shares and that of Put Options stood at 5.22 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.40 Cr shares and that of Put Options stood at 54 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 7, 2012

Range Bound Markets: February 7, 2012

Nifty February Futures more or less remained in a range and closed at 5355.20 down by marginal 11.65 points. Bank Nifty too remained in a range but closed at 10330.60 up by 90.70 points. Volumes were more or less similar to yesterday and saw traction in Index Futures & Stock Futures. Open Interest in Nifty across all the series saw an up tick by 11.66 lakh shares and stood at 2.85 Cr shares. Put Call Ratio too saw a marginal up tick and stood at 1.19, indicating market participants are comfortable writing puts against calls. Volatility as measured by India VIX was comfortably trading at 24.91 up by marginal 1%. Dollar Rupee Pair was trading at 49.21 marginally down from yesterday’s level. All in all it was a range bound market with a upward bias.

Analysis of data and today’s price movement indicate that Nifty is trying to break 5400 level but is not closing above it. Similarly it is not even going down significantly. My prognosis is still bullish and I feel as long it remains above its 200 DMA which is placed at 5197, upside target of 5650 is very much alive. As of now Nifty will consolidate between the range of 5200-5400 with upward bias. Advice is to hold on the long positions with stop below 5190 and target of 5650.

Top five individual stocks which gained today were JINDALSWHL 20%, TTKPRESTIG 15%, JETAIRWAYS 14%, KFA 13% and CENTRALBK 11%.

Top five individual stocks which lost ground were NCC -15%, ADANIPOWER -10%, INDIAINFO -8%, ADANIENT -8% and TULIP -7%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, RELIANCE 860 CE, RELIANCE 840 CE, TATASTEEL 460 PE and RELIANCE 840 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (5.77 LK) 5500 CE (9.19 LK) 5600 CE (3.35 LK) 5900 CE (1.80 LK) 6000 CE (1.39 LK) 4400 PE (1.12 LK) 4700 PE (1.12 LK) 4900 PE (7.68 LK) 5100 PE (5.08 LK) 5200 PE (3.78 LK) 5300 PE (8.33 LK) 5400 PE (6.83 LK) 5500 CE (3.68 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5000 CE (1.62 LK) 5300 CE (2.81 LK) 5700 CE (2.60 LK) 5800 CE (.1.67 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.88 Cr shares and that of Put Options stood at 5.29 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.44 Cr shares and that of Put Options stood at 45.58 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 6, 2012

Day of Consolidation: February 6, 2012

Nifty February Futures after opening stronger gave away some gain during the day but managed to close higher by 21.30 points at 5366.85. Bank Nifty too closed higher by 85.05 points at 10239.90. Volumes were higher than yesterday on both Futures and Options segment of the market. Open Interest in nifty Futures across all the series shot up by 18.53 lakh shares and stood at 2.73 Cr shares indicating built up of positions on Long side. Put Call Ratio shot up to 1.16 from 1.10 levels indicating market participants were comfortable writing puts over calls. Volatility as measured by India VIX was up by 2% at 24.62. Dollar Rupee pair was marginally up to 49.30 from 48.95 levels of yesterday. All in all it was a day of consolidation and journey of Nifty to march towards higher goal post continued.

My opinion still remains the same that is after consolidating for couple of days Nifty should spearhead and cross 5400 level comfortably. All those who were long today got an opportunity to partially book profit at 5400 levels. Those who are still long should continue to ride Bull trend with adequate stop loss. My feeling is that we will be able to touch 5650 once we comfortably cross 5400 level. If we fail to do so we will trade in a range of 5200 to 5400 for few days and than only we will be able to decide on which side of range we will break.

Top five individual stocks which gained today were INDIAINFO 22%, JINDALSWHL 17%, UNITECH 13%, VOLTAS 11% and DENABANK 10%.

Top five individual stocks which lost ground were EKC -4%, TATAPOWER -45, TATAGLOBAL -4%, ARVIND -3% and ABGSHIP -3%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, HINDUNILVR 420 CE, SBIN 1900 PE, SBIN 2000 PE and HINDUNILVR 380 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (7.21 LK) 5500 CE (6.21 LK) 5600 CE (5.59 LK) 5700 CE (7.04 LK) 5800 CE (3.05 LK) 5900 CE (1.61 LK) 6100 CE (1.30 LK) 4700 PE (2.28 LK) 4900 PE (4.38 LK) 5100 PE (1.05 LK) 5200 PE (13.24 LK) 5300 PE (14.13 LK) 5400 PE (9.12 LK) 5500 PE (2.07 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 CE (-1.71 LK) 5000 CE (-2.43 LK) 5100 CE (-1.56 LK) 5200 CE (-1.62LK) 4800 PE (-2.75 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.77 Cr shares and that of Put Options stood at 5.10 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.54 Cr shares and that of Put Options stood at 36.58 Lk shares. Put Call Ratio in Nifty February Option Series stood pretty strong at 1.65.

                                           

Happy Trading

Atul Doshi

Derivatives Daily Update: 03.02.2012

Bulls Ride: February 3, 2012

Bulls were on the top during the day as Nifty February Futures closed at 5345.55 up by 71.2 points. Bank Nifty too closed at 10154.85 up by 187.05. Open Interest on consolidated basis across all the series was up by 7.73 lakh shares indicating Bulls were busy mopping up positions. Volumes were lower than yesterday on all fronts as there was less choppiness in the market and markets were moving steadily & resiliently up. Put Call Ratio was marginally lower at 1.06 and Volatility as measured by India VIX was up by 2% at 24.09. Dollar Rupee pair was trading lower at 48.95 adding strength to the market. All in all Bulls were riding the market and bears were silently watching.

My prognosis that we are heading higher and will touch at least 5400 is vindicated as today also we smartly closed above previous day and kept steadily rising. My advice is to hold on your long positions till 5400 and partially book some profits at those levels. It seems that new Bull Run has started but it needs some confirmation which will come once we cross 5400. Till that time enjoy the ride. Bears who want to short wait for the failure to break 5400 but mind you that you have limited downside till 5200 where you need to cover up your shorts.

Top five individual stocks which gained today were 3IINFOTECH 12%, ORCHIDCHEM 11%, TATAGLOBAL 9%, DCHL 9% and CESC 8%.

Top five individual stocks which lost ground were TRIVENI -6%, HINDALCO -4%, RCOM -3%, FINANTECH -3% and JINDALSTEL -3%.

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

Top five individual options which attracted higher activity today were ICICIBANK 900 CE, RELIANCE 840 CE, SBIN 2100 CE, ICICIBANK 920 CE and BHARTIARTL 400 CE.

Nifty option series where POSITIVE change in open interest was seen were 5500 CE (6.68 LK) 5600 CE (4.71 LK) 5700 CE (3.19 LK) 5800 CE (2.82 LK) 4900 PE (1.37 LK) 5000 PE (4.15 LK) 5200 PE (13.43 LK) 5300 PE (8.77 LK) 5400 PE (3.24 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (1.37 LK) 5200 CE (4.73 LK) 5300 CE (8.71 LK) 5400 CE (5.56 LK) 4700 PE (6.91 LK) 5100 PE (1.22 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.44 Cr shares and that of Put Options stood at 4.79 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.63 Cr shares and that of Put Options stood at 24.72 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 2, 2012

Bull Run Continues: February 2, 2012

Nifty February Futures continued its upward journey and gave a close of 5274.35 up by 12.20 points. Bank Nifty closed marginally lower at 9967.80 down by 5 points. Volumes were much better than yesterday and were almost higher than yesterday in both Futures and Options segments of the market. Put Call Ratio improved to 1.10 from 0.93 indicating market players writing more puts than calls which in turn indicates players are bullish in the market. Open Interest saw an upsurge by 1.85 lakh shares across all the series and it stood at 2.47 Cr shares. Upsurge indicates some positions have been added to long side by market participants. Volatility shot up by nearly 4% at 23.69 due to some news driven choppiness in the market. Dollar Rupee pair was trading lower at 49.38 from 49.69 indicating some strength in rupee which again is good for maintaining sentiment of the market. All in all it was a better day for Bull and slowly and steadily Nifty is marching ahead.

In nutshell upward journey continued today also. We have seen Nifty marching towards its potential target of 5402. As said in several earlier posts, those who are holding their longs are advised to hold on their longs at least till 5402 with stop below 5135 and for those who have larger appetite for loss up to 5050.

Top five individual stocks which gained today were ABAN 16%, HEXAWARE 11%, SINTEX 8%, ANDHRABANK 8% and EDUCOMP 7%.

Top five individual stocks which lost ground were UNITECH -7%, ASHOKLEY -65, SUNTV -5%, IDFC -5% and RCOM -4%.

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

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2200 CE, SBIN 2000 PE, ICICIBANK 900 CE and SBIN 1900 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (2.67 LK) 5500 CE (3.01 LK) 5600 CE (3.28 LK) 5700 CE (3.78 LK) 5800 CE (1.40 LK) 4500 PE (2.69 LK) 5000 PE (7.50 LK) 5100 PE (11.40 LK) 5200 PE (13.63 LK) 5300 PE (7.83 LK) 5400 PE (1.93 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-2.85 LK) 45200 CE (1.54 LK) 4700 PE (-6.11 LK) 4900 PE (-1.39 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.92 Cr shares and that of Put Options stood at 4.41 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.24 Cr shares and that of Put Options stood at 44.70 Lk shares.

Happy Trading

Atul Doshi

Derivatives Daily Update: February 1, 2012

Upward Journey Continues: February 1, 2012

Nifty February Futures opened weak but bounced back during the day and closed at 5262.15 up by 38.80 points. It made higher top higher bottom today. Bank Nifty too closed marginally higher by 20.40 points at 9972.85. It too made higher top higher bottom formation. Volumes were higher than yesterday mainly in Index Options segment. Open Interest in Nifty across all the open series came down by 3.13 lakh shares indicating some short covering in the market. Put Call Ratio improved a bit to 0.93 levels from 0.89 level. Volatility as measured by India VIX was up by 1% at 22.89. Dollar Rupee pair was trading marginally lower at 49.69. All in all it was a good day for Bulls as choppiness in the market was lower and some kind of confidence was seen in the market.

As said in several posts if Nifty is able to sustain & trade above 5218, its 200 DMA, probability of market moving higher by 5 to 10% is very strong with some kind of resistance at 5400 level. My advice to hold on your long at least till 5400 and review at that point in time. Every fall from top use to correct maximum up to 75 % but this time, fall from 5135 to 4538 level was retraced fully and has moved above 5135 indicating bear trend which started from 6300 level ended at 4538 level and probably new uptrend has started from 4538 levels though confirmation of uptrend is needed which I hope will come in few days.

Top five individual stocks which gained today were IVRCLINFRA 13%, GTOFFSHORE 10%, IFCI 9%, PFC 9% and EKC 9%.

Top five individual stocks which lost ground were IOC -6%, TITAN -3%, TTKPRESTIG -3%, COALINDIA -3% and HINDPETRO -2%.

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

Top five individual options which attracted higher activity today were ICICIBANK 900 CE, SBIN 2100 CE, RELIANCE 840 CE, IFCI 32 CE and RELIANCE 820 CE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (9.38 LK) 5400 CE (10.40 LK) 5500 CE (12.58 LK) 5600  CE (3.87 LK) 5700 CE (1.79 LK) 4800 PE (2.37 LK) 4900 PE (1.52 LK) 5000 PE (9.08 LK) 5100 PE (8.57 LK) 5200 PE (6.80 LK) 5300 PE (7.79 LK) 5400 PE (3.78 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 CE (-1.29 LK) 5200 CE (-4.11 LK) 4700 PE (-2.42 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.84 Cr shares and that of Put Options stood at 3.97 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.33 Cr shares and that of Put Options stood at 35 Lk shares.

Happy Trading

Atul Doshi