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
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