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