Derivatives Daily Update: April 17 2012

Positive Day: April 17, 2012

Nifty April Futures closed on positive note at 5319.60 up by 71.15 points. Bank Nifty closed at 10573.35 up by 85.75 points. Volumes were smartly up and stood at Rs 1.67 trillion almost little less than double from yesterday’s level. Open Interest in Nifty across all the series too shot up smartly by 11 lakh shares at 2.13 Cr shares. Put Call Ratio too showed an improvement and was at 0.99 levels. Volatility as measured by India VIX was drastically down by 9% at 20.31 and Dollar Rupee duo was also trading slightly lower at 51.63. All in all statistics of today reflect perfect case of bullish sentiment.

In my Opinion, worries expressed in my yesterday’s post almost got answered today. In yesterday’s post I expressed:  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. Today all this worries got answered as you can see from the data above that Volumes were higher, Put Call Ratio was better and Open Interest too increased. I continue with my stance that as long as we remain above 5150, chances of kissing 5550-5600 are very much on the card. My advice is to buy in every dip with potential target of 5550-5600 and stop below 5150.

Top five individual stocks which gained today were HINDOILEXP 8%, PANTALOON 7%, RELINFRA 6%, CENTURYTEX 6% and RELCAPITAL 6%.

Top five individual stocks which lost ground were ALBK -2%, LUPIN -2%, CAIRN -2%, IDEA -1% and BEML -1%.

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

Top five individual options which attracted higher activity today were SBIN 2300 CE, SBIN 2400 CE, SBIN 2200 PE, SBIN 2350 CE and SBIN 2100 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (3.43 LK) 5500 CE (2.76 LK) 5000 PE (1.69 LK) 5100 PE (9.44 LK) 5200 PE (10.04 LK) 5300 PE (9.93 LK) 5400 PE (3.92 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (1.47 LK) 5800 CE (1.25 LK) 4600 PE (1.40 LK) 4900 PE (5.16 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.59 Cr shares and that of Put Options stood at 3.84 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.09 Cr shares and that of Put Options stood at 47.47 LK shares. Put Call Ratio of current series alone stands at 1.33.

Happy Trading

Atul Doshi