Derivatives Daily Update: March 20, 2012

Listless Day: March 20, 2012

Nifty March Futures closed at 5297 up by 20 points. Bank Nifty too closed higher by 97.15 points at 10325.55. Volumes were slightly higher than yesterday at Rs.1.36 trillion. Open Interest in Nifty across all the series came down by 3.27 lakh shares and stood at 4.46 Cr shares. Put Call Ratio improved to 0.99 from 0.83 levels. Volatility as measured by India VIX was down by 5% at 21.94. Dollar Rupee pair was trading at 50.50. All in all it was a day of consolidation after correction of couple of days.

I hold the same opinion as expressed in earlier posts that in short term we might correct up to 5175 but fall beyond that level seems to be difficult. Medium term chart of Nifty represents bullish pattern and every fall in Nifty warrants some buying. Though upper level too are capped at 5550 levels but if we do not break 5175 and again start moving up this level can be taken out. In nutshell Buy with stop below 5175 with medium term target of 5550 -5600 level.

Top five individual stocks which gained today were BATAINDIA 6%, PATELENG 6%, VIPIND 6%, TTKPRESTIG 6% and PTC 5%.

Top five individual stocks which lost ground were TATAMTRDVR -6%, KFA -6%, TATAMOTORS -4%, ADANIPOWER -4% and ADANIENT -4%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2300 CE, SBIN 2250 CE, SBIN 2100 PE and RELIANCE 760 CE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (3.14 LK) 5400 CE (3.38 LK) 5500 CE (1.95 LK) 5700 CE (2.54 LK) 4900 PE (6.34 LK) 5100 PE (3.42 LK) 5200 PE (2.33 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5800 CE (3.68 LK) 5900 CE (1.17 LK) 4800 PE (1.33 LK) 5000 PE (1.15 LK) 5300 PE (1.48 LK) 5500 PE (3.30 LK) 5600 PE (4.56 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.35 Cr shares and that of Put Options stood at 3.99 Cr shares. Outstanding open interest in In the Money Call Options stood at 69.76 LK shares and that of Put Options stood at 1.37 Cr shares. Put Call Ratio of current series alone stands at 1.06.

Happy Trading

Atul Doshi