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Thursday, 12 April 2012

Derivatives Daily Update: April 12 2012


Resilient Day: April 12, 2012

Nifty April Future closed at 5290.65 up by 39.30 points. Bank Nifty closed at 10425.65 up by 159.20 points. Volumes were lower than yesterday and stood at Rs 939 bn. Open Interest in Nifty across all the series surged up by 3.10 lakh shares and stood at 1.98 Cr shares. Put Call Ratio was almost flat at 0.98. Volatility as measured by India VIX came down by 2% at 21.78. Dollar Rupee duo was trading slightly lower at 51.57. All in all it was a day of consolidation and some kind of resilience was seen in the market.

My prognosis of the market and statistical data indicates that we are heading higher and failure to breach below 5150 will take us to 5550-5600 levels. It is advisable to remain bullish in the market till any further downward pressure is seen, instead wait for some positive trigger like improvement in Open Interest coupled with rise in price and Put Call Ratio.

Top five individual stocks which gained today were NAGAROIL 8%, MAX 7%, PATELENG 7%, NCC 7% and RENUKA 6%.

Top five individual stocks which lost ground were HDIL -5%, IGL -4%, JETAIRWAYS -3%, POLARIS -3% and CAIRN -2%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, INFY, AXISBANK and HDIL.

Top five individual options which attracted higher activity today were INFY 2700 PE, INFY 2900 CE, SBIN 2300 CE, SBIN 2200 CE and INFY 3000 CE.
Nifty option series where POSITIVE change in open interest was seen were 5400 CE (2.16 LK) 5500 CE (3.67 LK) 5600 CE (3.82 LK) 5900 CE (1.10 LK) 4300 PE (1.32 LK) 4600 PE (1.76 LK) 4900 PE (4.22 LK) 5100 PE (2.62 LK) 5200 PE (10.52 LK) 5300 PE (4.78 LK) 5400 PE (1.09 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 PE (2.60 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.72 Cr shares and that of Put Options stood at 3.26 Cr shares. Outstanding open interest in In the Money Call Options stood at 59.21 LK shares and that of Put Options stood at 85.99 LK shares. Put Call Ratio of current series alone stands at 1.16.
Happy Trading

Atul Doshi

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