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Wednesday, 11 April 2012

Derivatives Daily Update: April 11 2012


Choppy Day: April 11, 2012

Amidst choppiness in the market Nifty April Futures closed at 5251.35 down by 14.80 points. Bank Nifty closed at 10266.45 up by 31 points. Volumes were higher than yesterday and stood at Rs1.15 trillion. Open Interest saw a marginal improvement of 1.70 lakh shares at 1.94 Cr shares. Put Call Ratio improved to 0.98 from 0.92 levels. Dollar Rupee duo was trading at 51.65 and Volatility as measured by India VIX was trading at 22.29 up by 2%.

In my analysis, it seems that we will be breaking this range bound movements in coming days and that too probably on higher side. I base my assumptions on 2 factors, one that volatility is at the lower end of the range and will move towards its mean and second Put Call Ratio is steadily rising and once it shot up above 1, momentum will gather, But still this are early days and we need to watch the behavior of price for couple of days. Till that time it is advisable to Buy in dips until it breaks 5150 for the probable target of resistance zone which is placed around 5550-5600 levels.

Top five individual stocks which gained today were FINANTECH 6%, JETAIRWAYS 5%, HINDOILEXP 4%, MAX 3% and HEXAWARE 3%.

Top five individual stocks which lost ground were INDIACEM -8%, NAGAROIL -7%, CENTURYTEX -6%, RELCAPITAL -5% and ACC -5%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2300 CE, SBIN 2150 CE, SUZLON 25 CE and RELIANCE 740 CE.
Nifty option series where POSITIVE change in open interest was seen were 5200 CE (5.89 LK) 5300 CE (9.09 LK) 5400 CE (6.84 LK) 5500 CE (3.96 LK) 4700 PE (1.16 LK) 4900 PE (2.35 LK) 5000 PE (2.35 LK) 5000 PE (7.77 LK) 5100 PE (6.58 LK) 5200 PE (5.63 LK)

Nifty option series where NEGATIVE change in open interest was seen were 6000 CE (2.42 LK) 4500 PE (1.11 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.67 Cr shares and that of Put Options stood at 3.18 Cr shares. Outstanding open interest in In the Money Call Options stood at 61.07 LK shares and that of Put Options stood at 81.82 LK shares. Put Call Ratio of current series alone stands at 1.15.

Happy Trading

Atul Doshi

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