Derivatives Daily Update: April 2 2012

Short Covering Day: April 2, 2012

Nifty April Futures closed at 5350.65 up by 17.40 points. Bank Nifty closed at 10358.80 up by 82.95 points. Volumes were lower than yesterday and stood at Rs 790 bn.  Open Interest saw a reduction by nearly 18.85 lakh shares and stood at 2.11 Cr shares across all pending series which indicates short covering in the market. Put Call Ratio in Options Segment was almost flat at 1.06. Volatility as measured by India VIX was down by 7% at 20.88. Dollar Rupee duo was closed for trading today. All in all price wise there was improvement in market and some shorts that were carried forward got covered up today.

As expressed in earlier posts, my prognosis is that we are in secular Bull market and correction that started from higher level was almost over and we are heading towards 5550 -5600 levels. Once this level is decisively crossed we might approach a new high. My advice is to buy in to all dips till we are trading above long term averages which are placed around 5150 level.

Top five individual stocks which gained today were PTC 10%, HINDOILEXP 7%, BGRENERGY 7%, TITAN 7% and BFUTILITIE 6%.

Top five individual stocks which lost ground were NAGAROIL -13%, BEML -5%, AUROPHARMA -4%, JINDALSAW -3% and OIL -3%.

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

Top five individual options which attracted higher activity today were SBIN 2200 CE, RELIANCE 760 CE, SBIN 2300 CE, SBIN 2000 PE and DLF 190 PE.

Nifty option series where POSITIVE change in open interest was seen were 5400 CE (5.93 LK) 5500 CE (1.77 LK) 5600 CE (7.43 LK) 5900 CE (1.66 LK) 4700 PE (15.57 LK) 4800 PE (4.13 LK) 4900 PE (2.32 LK) 5100 PE (2.31 LK) 5200 PE (4.03 LK) 5300 PE (4.88 LK) 5400 PE (3.04 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 CE (1.19 LK) 4900 CE (1.49 LK) 5000 CE (1.30 LK) 5100 CE (1.27 LK) 5200 CE (1.99 LK) 4600 PE (12.65 LK) 5000 PE (1.29 LK)

Outstanding open interest in Out of the Money Call Options stood at 1.95 Cr shares and that of Put Options stood at 2.94 Cr shares. Outstanding open interest in In the Money Call Options stood at 79.59 LK shares and that of Put Options stood at 47.09 LK shares. Put Call Ratio of current series alone stands at 1.36.

Happy Trading

Atul Doshi