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Monday, 16 April 2012

Derivatives Daily Update: April 16 2012


Better Day: April 16, 2012

Nifty April Futures closed mildly up by 27.35 points at 5248.45. Bank Nifty closed up by 159.70 points at 10487.60 points. Volumes were lower than previous day at Rs 916 bn. Open Interest across all the series in Nifty was almost flat at 2.02 Cr shares. Put Call Ratio came down to 0.89 from 1.03. Volatility as measured by India VIX was down by 2% at 22.23 and Dollar Rupee duo was trading at 51.78 in futures market. All in all it was a better day with resilience but lower activity. Market is eagerly waiting for Monetary Policy to be announced by RBI tomorrow.

As long as Nifty remains above 5150 level, in my opinion long term trend of Nifty has not vitiated. It is advisable to Buy with Stop loss below 5150 levels and price target of 5550-5600. In extremely short run, two factors worry me. One Put Call Ratio below 1 does not augur well for the market and two volumes are low on rising days and high on down days. Participation as reflected by Open Interest too is very low in the market which too is not good for the Bulls.

Top five individual stocks which gained today were AUROPHARMA 9%, TTKPRESTIG 6%, HEXAWARE 6%, DENABANK 6% and SREINFRA 5%. 

Top five individual stocks which lost ground were IVRCLINFRA -4%, GSPL -3%, ULTRACEMCO -3%, AMBUJACEM -2% and IDEA -2%.

Top five individual stocks which attracted higher volumes were INFY, SBIN, ICICIBANK, TATAMOTORS and RELIANCE.

Top five individual options which attracted higher activity today were INFY 2500 CE, SBIN 2300 CE, INFY 2400 CE, INFY 2600 CE and INFY 2300 PE.
Nifty option series where POSITIVE change in open interest was seen were 5200 CE (2.60 LK) 5300 CE (4.96 LK) 5400 CE (7.72 LK) 4600 PE (1.60 LK) 5300 PE (1.10 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (2.50 LK) 4300 PE (1.01 LK) 5400 PE (1.19 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.06 Cr shares and that of Put Options stood at 3.29 Cr shares. Outstanding open interest in In the Money Call Options stood at 63.18 LK shares and that of Put Options stood at 79.20 LK shares. Put Call Ratio of current series alone stands at 1.06

Happy Trading

Atul Doshi

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