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