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