Derivatives Daily Update: May 31 2012

Weak Expiry: May 31, 2012

Nifty May Futures closed lower by 16.80 points at 4916.25. Bank Nifty closed lower by 32.10 points at 9438.65 points. Open Interest in Nifty across all the series came down by 15 lakh shares at 2.54 Cr shares. Open Interest in Nifty in June series has increased by 26 lakh shares and stood at 1.44 Cr shares. Turnover was obviously higher at Rs 1.95 trillion due to roll over. Put Call Ratio was at 1.05 and Volatility as measured by India VIX was almost flat at 25.25. Dollar Rupee duo too was subdued at 56.43. In all it was a weak expiry though after opening lower it managed to close some what higher than opening.

I stick to my earlier opinion that we are engulfed in bear trend and every rise in the market is an opportunity to sell with probable first target at 4800 and below that at 4550 4600. It is advisable to go long only after some meaningful bottom is in place which can be formed once we move above 5125 level and sustain above that for couple of days.

Top five individual stocks which gained today were UCOBANK 7%, TTML 7%, DENABANK 6%, SOUTHBANK 6% and VIJAYABANK 6%.

Top five individual stocks which lost ground were SUZLON -8%, MCDOWELL -7%, MARUTI -4%, ICICIBANK -4% and TATAMOTORS -4%.

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

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2050 PE, TATAMOTORS 240 CE, SBIN 2100 PE and SBIN 2150 CE.

Nifty option series where POSITIVE change in open interest was seen were 5000 CE (17.55 LK) 4800 PE (25.41 LK) 4900 PE (32.22 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4000 CE (1.26 LK) 4700 CE (1.48 LK) 4800 CE 92.26 LK0 4900 CE (13.22 LK) 5200 CE (2.08 LK) 5000 PE (16.47 LK0 5100 PE (2.45 LK0 5200 PE (2.79 LK0 5300 PE (2.67 LK) 5400 PE (1.47 LK) 5500 PE (2.25 LK) 6000 PE (1.19 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.70 Cr shares and that of Put Options stood at 3.59 Cr shares. Outstanding open interest in In the Money Call Options stood at 24.92 LK shares and that of Put Options stood at 40.37 LK shares. Put Call Ratio of current series alone stands at 1.01

Happy Trading

Atul Doshi

Derivatives Daily Update: May 30 2012

Weakness Continues: May 30, 2012

Nifty May Futures closed down by 48.60 points at 4933.05. Bank Nifty closed down by 182.75 points at 9470.75. Open Interest in Nifty across all the series saw an improvement by 5.65 lakh shares at 2.69 Cr shares indicating fresh shorts being created in the market. Turnover more or less was the same at Rs 1.48 trillion. Put Call Ratio drastically came down to below 1 at 0.97 from 1.14 levels due to large scale unwinding of Puts indicating shaken confidence amongst the traders in the market. Volatility has again increased by 5% at 25.30 indicating choppiness and weakness in the markets. Dollar Rupee pair too was trading higher at 56.53 again indicating pressure on Rupee and hence subdued interest of traders.

In my opinion correction of bear trend which started couple of days back has ended and downward trend has again resumed. I reiterate my stand that in medium to long term we are in bear trend and every rise in the market warrants a Sell with price objective of 4800 and below that 4550-4600. I remind you that stop loss is must while trading. Sell with stop loss of 4965 and 5060.

Top five individual stocks which gained today were SKUMARSYNF 8%, AMBUJACEM 5%, TECHM 4%, CROMPGREAV 3% and ACC 3%.

Top five individual stocks which lost ground were TATAMOTORS -12%, TATAMTRDVR -10%, NAGAROIL -8%, HAVELLS -7% and ROLTA -7%

Top five individual stocks which attracted higher volumes were TATAMOTORS, SBIN, ICICIBANK, SBIN and TATASTEEL

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2100 PE, TATAMOTORS 260 CE, SBIN 2150 CE and SBIN 2050 PE

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (2.67 LK) 5000 CE (6.48 LK) 4800 PE (1.45 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (9.77 LK) 5200 CE (3.28 LK) 5300 CE (1.73 LK) 5400 CE (2.04 LK) 4600 PE (1.09 LK) 4700 PE (1.61 LK) 4900 PE (3.43 LK0 5000 PE (9.23 LK) 5100 PE (3.61 LK) 5400 PE (1.06 LK) 5500 PE (1.15 LK) 5600 PE (1.37 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.53 Cr shares and that of Put Options stood at 3.01 Cr shares. Outstanding open interest in In the Money Call Options stood at 44.28 LK shares and that of Put Options stood at 71.53 LK shares. Put Call Ratio of current series alone stands at 0.94

Happy Trading

Atul Doshi 

Derivatives Daily Update: May 29 2012

Day of Consolidation: May 29, 2012

Nifty May Futures closed at 4981.65 up by 6.25 points. Bank Nifty closed at 9653.5 mildly up by 2.55 points. Open Interest in Nifty across all the series was up by 5 lakh shares at 2.64 Cr shares though current series shredded 15 lakh shares, implying roll over has taken place. Turnover was up at Rs 1.47 trillion, thanks to roll over. Put Call Ratio was up by 10 basis point at 1.14 indicating Put writing or Call unwinding happening in the market. Volatility as measured by India VIX shot up by 1% to 24.37 and Dollar Rupee pair too was trading higher at 55.59 putting Rupee under pressure. In all market was largely indicating roll over activity with out much of fanfare.

In my opinion as said in several earlier post that in extremely short run we might pull back up to 5060 and if pull back extends further than up to 5228 which to me seems to be difficult. Medium to long term we are in to intermediate bear trend and it can construed to be over only when we decisively close above 5250 level. Every rise is a shorting opportunity with probable first target at 4800 and below that 4550 4600 level.

Top five individual stocks which gained today were SOUTHBANK 6%, GVKPIL 4%, ADANIPORTS 3%, GMDC 3% and PANTALOON 3%.

Top five individual stocks which lost ground were AUROPHARMA -6%, BEML -4%, VOLTAS -4%, IVRCLINFRA -3% and ONMOBILE -3%.

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

Top five individual options which attracted higher activity today were SBIN 2150 CE, SBIN 2200 CE, SBIN 2100 CE, SBIN 2100 PE and SBIN 2050 PE.

Nifty option series where POSITIVE change in open interest was seen were 5100 CE (7.58 LK) 4800 PE (14.32 LK) 4900 PE (6.45 LK) 5000 PE (8.74 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 CE (5.06 LK) 4900 CE (6.84 LK) 5000 CE (1.32 LK) 5200 CE (1.28 LK) 4600 PE (3.08 LK) 4700 PE (2.86 LK) 4400 PE (1.62 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.71 Cr shares and that of Put Options stood at 3.17 Cr shares. Outstanding open interest in In the Money Call Options stood at 44.80 LK shares and that of Put Options stood at 98.17 LK shares. Put Call Ratio of current series alone stands at 1

Happy Trading

Atul Doshi

Derivatives Daily Update: May 28 2012

Smart Recovery: May 28, 2012

Nifty May Futures closed higher by 56.55 points at 4975.40. Bank Nifty too closed higher by 234.30 points at 9650.95. Open Interest in Nifty across all the series increased by 13.58 lakh shares at 2.58 Cr indicating Bulls have added to their long positions today as they saw firming up of price. Bank Nifty saw reduction in Open Interest implying short covering by Bears. Turnover was up from yesterday’s level at Rs 1.36 trillion. Put Call Ratio was in a stable zone at 1.04 mildly lower than yesterday. Volatility as measured by India VIX has again gone down by 6% at 23.68 indicating some semblance in the market. Dollar Rupee pair too was on correction mode as it came down to 55.27 indicating some easing of pressure on Rupee. In all it was a smart recovery day with Bulls again becoming active in the market place.

As said in previous post, in extremely short run Nifty may pull back to 4965 which it has pull backed today. What next? It can pull up to 5060 as expressed in the same post. If one follow the retracement theory than Nifty has a potential to pull back up to 5228 level which might again invite Bears to become active. In my opinion in medium to long term since we are in bear trend this levels are difficult to breach hence every rise warrants a Sell. But for contrarians who want to punt on bullish side this may well be considered as maximum targets.

Top five individual stocks which gained today were BOMDYEING 9%, PIRHEALTH 7%, JUBLFOOD 7%, SKUMARSYNF 6% and GMDCLTD 6%.

Top five individual stocks which lost ground were GAIL -3%, BPCL -2%, ONMOBILE -2%, APIL -2% and NMDC -2%.

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

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2050 CE, SBIN 2000 PE, SBIN 2050 PE and SBIN 2000 CE.

Nifty option series where POSITIVE change in open interest was seen were 5100 CE (2.25 LK) 5200 CE (4.48 LK) 4900 PE (13.55 LK) 5000 PE (9.95 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-2.56 LK) 4800 CE (-6.28 LK) 4900 CE (-11.04 LK) 5000 CE (-1.97 LK) 5300 CE (-1.54 LK) 5400 CE (-1.79 LK) 5500 CE (-1.03 LK) 4400 PE (-1.67 LK) 4500 OE (-4.29 LK) 4600 PE (-13.72 LK) 4700 PE (-2.44 LK) 4800 PE (-1.71 LK) 5200 PE (-1.22 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.82 Cr shares and that of Put Options stood at 3.21 Cr shares. Outstanding open interest in In the Money Call Options stood at 60.26 LK shares and that of Put Options stood at 95.88 LK shares. Put Call Ratio of current series alone stands at 0.94.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 25 2012

Lackluster Day: May 25, 2012

Nifty May Futures closed mildly up by 5.75 points at 4918.85. Bank Nifty too closed mildly up by 33.20 points at 9416.65. Open Interest in Nifty across all the series saw positive change by 86 K shares at 2.44 Cr shares. Turnover was lower at Rs 1.22 trillion. Put Call Ratio for both Index & Stock Options was up at 1.06 indicating traders were confident in market at least for couple of days as they either wrote Puts against Calls or bought Calls against Puts. Volatility as measured by India VIX was down by 1% at 25.37 and Dollar Rupee pair in Currency market was trading lower at 55.41 easing some pressure on Rupee. In all it was a day with not much fanfare probably looking for some kind of break out.

In my opinion, in extremely short run Nifty might pull back up to 4965 or if some buying emerges it may visit 5060. In medium to long term Charts have turn negative and every rise in the market warrants Short Sale for price objective of 4800 and below that for 4550-4600 levels with obvious Stop Loss at 5060.

Top five individual stocks which gained today were VOLTAS 12%, PRAJIND 8%, ADANIENT 7%, NHPC 6% and JUBLFOOD 6%.

Top five individual stocks which lost ground were WELCORP -4%, GUJFLUORO -3%, JINDALSTEL -3%, JETAIRWAYS -3% and MARUTI -3%.

Top five individual stocks which attracted higher volumes were SBIN, ICICINBANK, AXISBANK, TATASTEEL and BHEL.

Top five individual options which attracted higher activity today were SBIN 2000 CE, SBIN 2050 CE, SBIN 1900 PE, SBIN 1950 PE and SBIN 2100 CE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (1.25 LK) 5000 CE (1.77 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-3.37 LK) 4800 CE (-6.03 LK) 5100 CE (-2.50 LK) 5300 CE (-1.38 LK) 4500 PE (-2.72 LK) 4600 PE (-9.88 LK) 4800 PE (-6.21 LK) 5000 PE (-3.63 LK) 5100 PE (-1.25 LK) 5200 PE (-1.30 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.84 Cr shares and that of Put Options stood at 3.32 Cr shares. Outstanding open interest in In the Money Call Options stood at 80.83 LK shares and that of Put Options stood at 89.47 LK shares. Put Call Ratio of current series alone stands at 0.86

Happy Trading

Atul Doshi

Derivatives Daily Update: May 24 2012

An Up Day: May 24, 2012

Nifty May Futures closed higher by 98.55 points at 4913.10. Bank Nifty closed higher by 248.65 points at 9383.45. Open Interest in Nifty in current series came down by 12 lakh shares and on consolidated basis across all the series was down by 2.66 lakh shares at 2.44 Cr shares indicating some roll over is already taking place. Turnover was better than yesterday at Rs 1.66 trillion. Put Call Ratio for both Index & Stock Options across all the series stood at 1 and for current series shot up to 0.99 from 0.89 levels indicating traders are getting some confidence back and are writing Puts against Calls. Volatility as measured by India VIX was drastically down by 7% at 25.49 and Dollar Rupee pair too was trading lower at 55.89. In all it was a up day but looking at the Open Interest it seems that Bears have not covered up instead Bulls have unwound today.

My analysis is still tilted towards markets going down. As said in yesterday’s post, correction can pull Nifty to 4965 levels. It is necessary to wait for break out happening in sustainable manner to build up the long positions. As of now it is advisable to short Nifty with 4965 & 5060 as stop loss with Price objective of at least 4800 and below that for 4550 4600 levels.

Top five individual stocks which gained today were PANTALLON 9%, TECHM 8%, AUROPHARMA 7%, POLARIS 7% and ONGC 6%.

Top five individual stocks which lost ground were CROMPGREAV -3%, SOBHA -3%, OPTOCIRCUIT -3%, ALBK -2% and HINDPETRO -2%.

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

Top five individual options which attracted higher activity today were SBIN 2000 CE, SBIN 1950 CE, SBIN 1900 PE SBIN 2050 CE and SBIN 1950 PE.

Nifty option series where POSITIVE change in open interest was seen were 5100 CE (2.11 LK) 4600 PE (8.30 LK) 4700 PE (6.95 LK) 4800 PE (14.33 LK) 4900 PE (18.73 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4700 CE (-2.78 LK)  4800 CE (-11.41 LK) 4900 CE (-4.04 LK) 5000 CE (-2.64 LK) 5400 CE (-3.34 LK) 4500 PE (-7.25 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.94 Cr shares and that of Put Options stood at 3.82 Cr shares. Outstanding open interest in In the Money Call Options stood at 94.89 LK shares and that of Put Options stood at 1 Cr shares. Put Call Ratio of current series alone stands at 0.99.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 23 2012

Downward Journey Continues: May 23, 2012

Nifty May Futures closed lower by 26.65 points at 4814.55. Bank Nifty too closed lower by 50.10 points at 9134.80. Open Interest in Nifty across all the series saw an increase by 2 lakh shares at 2.46 Cr shares indicating fresh shorts created in the market. Turnover was up at Rs.1.37 trillion. Put Call Ratio across all the series and for both Index & Futures Options was smartly up at 0.99 from 0.86 levels though the same for current series only was marginally up to 0.89 from 0.86 levels. Volatility as measured by India VIX was remarkably up by 11% at 27.13 implying weak sentiment and weariness among the traders. Dollar Rupee pair continued to play a spoil sport as it was trading at much higher level of 56.23 sending Rupee to all time low, obviously weak rupee doesn’t augur well for equities. In all downward journey which was started couple of days back continued today too.

In my opinion, we are clearly in intermediate down trend and unless & until we see some good bottom formation after few higher highs and higher lows, one should continue with negative stance and remain bearish in Nifty. Once we decisively break 4800 which is 200 Week’s moving average, we will revisit levels of 4550 -4600. Pull backs if any may take Nifty to 4965 and at the most 5060 so keep these levels in mind and if they are not breached short sell Nifty for price objective of 4550-4600.

Top five individual stocks which gained today were DELTACORP 7%, HAVELLS 6%, JETAIRWAYS 4%, GMRINFRA 4% and GAIL 4%.

Top five individual stocks which lost ground were VOLTAS -5%, BHARTIAIRTL 5%, JISLJAL -4%, KOTAKBANK -4% and ABAN -4%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, TATAMOTORS, BHEL and TATASTEEL.

Top five individual options which attracted higher activity today were SBIN 2000 CE, SBIN 1950 CE, SBIN 1900 CE, SBIN 1900 PE and SBIN 1850 PE.

Nifty option series where POSITIVE change in open interest was seen were 4700 CE (3.80 LK) 4800 CE (10.92 LK) 4400 PE (1.81 LK) 4500 PE (6.09 LK) 4600 PE (3.81 LK) 4700 PE (17.87 LK) 4800 PE (4.80 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 CE (-1.50 LK) 5200 CE (2.20 LK) 5300 CE (2.24 LK) 5400 CE (1.05 LK) 4900 PE (5.76 LK) 5000 PE (3.05 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.51 Cr shares and that of Put Options stood at 3.02 Cr shares. Outstanding open interest in In the Money Call Options stood at 62.16 LK shares and that of Put Options stood at 1.54 Cr shares. Put Call Ratio of current series alone stands at 0.89.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 22 2012

Weakness Resumed: May 22, 2012

Nifty May Futures closed at 4841.20 down by 52.70 points. Bank Nifty closed at 9184.90 down by 152.45 points. Open Interest in Nifty across all the series shot up by 9.10 lakh shares at 2.44 Cr shares indicating fresh shorts being created in the market. Turnover was substantially higher from yesterday’s level at Rs 1.23 trillion. Put Call Ratio for both Index & Stock Options across all the series was almost flat at 0.86 way below comfortable level of 1 which again is not a good sign for Bulls. Volatility as measured by India VIX shot up by 2% at 24.59 which again does not augur well for Bullish scenario. Dollar Rupee duo too played a spoil sport as it was trading at all time high of 55.45 putting immense pressure on Rupee which too is not good for equity markets. In all it was a dull day with almost all the indicators not in favor of Bulls.

As said yesterday and in couple of previous posts, we have ended a intermediate Bull market and we are headed for downward journey. Unless & until some meaningful bottom is in place it is advisable to short the Nifty with stop loss above 4965 and price objective of 4550. Bears can add further shorts when Nifty breaches 4800 on closing level.

Top five individual stocks which gained today were HEXAWARE 6%, ABGSHIP 6%, AUROPHARMA 3%, TCS 2% and ABB 2%.

Top five individual stocks which lost ground were IVRCLINFRA -11%, POLARIS -6%, IDEA -5% SREINFRA -5% and SESAGOA -5%

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

Top five individual options which attracted higher activity today were SBIN 2000 CE, SBIN 1950 CE, SBIN 2050 CE, SBIN 1900 PE and SBIN 2100 CE.

Nifty option series where POSITIVE change in open interest was seen were 4800 CE (5.51 LK) 4900 CE (6.77 LK) 5000 CE (13.31 LK) 4600 PE (5.42 LK0 4700 PE (9.13 LK) 4800 PE (2.51 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100 CE (-4.39 LK) 5200 CE (-5.36 LK) 5300 CE (-1.46 LK) 5400 CE (-15.23 LK) 4900 PE (1.42 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.62 Cr shares and that of Put Options stood at 2.73 Cr shares. Outstanding open interest in In the Money Call Options stood at 48.38 LK shares and that of Put Options stood at 1.67 Cr shares. Put Call Ratio of current series alone stands at 0.86.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 21 2012

Listless Day: May 21, 2012

Nifty May Futures closed mildly up by 4.95 points at 4893.90. Bank Nifty closed up by 80.55 points at 9337.35. Open Interest in Nifty across all series saw a reduction by 2.46 lakh shares at 2.35 Cr shares. Turnover was lower below Rs 1 trillion at Rs 979 bn. Put Call Ratio too saw a down tick and stood at 0.85 from 0.91 levels which does not give any bullish indication. Volatility as measured by India VIX was up by 2% at 23.92. Dollar Rupee duo was trading higher at 55.04 indicating pressure on Rupee. In nutshell it was a listless day with negative bias in the market.

In my opinion, as said in couple of earlier posts that we have ended a Bull Run and possibly we are headed downwards. Any rise from lower level is a Pull Back and must be sold into. Any way those traders who want to punt on Bull side, bear market correction can pull Nifty to 4965 and 5060 levels. In my opinion trader should try to short Nifty once it stops rising intra day for possible target of 4800 and below that 4530 with stop loss placed above 4965 and 5060.

Top five individual stocks which gained today were SUZLON 7%, RELCAPITAL 7%, BOMDYEING 7%, ARVIND 5% and TATAPOWER 5%. 

Top five individual stocks which lost ground were ONMOBILE -6%, NMDC -4%, TATACOMM -4%, SUNTV -4% and MAX 3%.

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

Top five individual options which attracted higher activity today were SBIN 2000 CE, SBIN 2050 CE, SBIN 21100 CE, SBIN 1900 PE and SBIN 1950 CE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (4.40 LK) 5000 CE (3.16 LK) 5100 CE (2.10 LK) 4600 PE (5.66 LK) 4800 PE (3.09 LK) 4900 PE (4.05 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800 CE (2.15 LK) 5300 CE (1.83 LK) 5400 CE (1.12 LK) 5600 CE (3.29 LK) 4400 PE (1.99 LK) 4500 PE (7.82 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.25 Cr shares and that of Put Options stood at 3.21 Cr shares. Outstanding open interest in In the Money Call Options stood at 92.40 LK shares and that of Put Options stood at 1.16 Cr shares. Put Call Ratio of current series alone stands at 0.84.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 18 2012

Day of Pullback: May 18, 2012

Nifty May Futures closed at 4888.95 up by 36.65 points after making a low of 4767.45. Bank Nifty closed at 9256.80 up by 171.20 points. Open Interest in Nifty across all the series saw reduction by 3.79 lakh shares at 2.38 Cr shares indicating some short covering done by traders. Turnover in the market was better than yesterday and stood at Rs 1.56 trillion. Put Call Ratio of Open Interest in both Index and Stock Options was almost flat at 0.91.  Volatility as measured by India VIX too was mildly lower at 23.55 and Dollar Rupee pair was trading slightly lower at 54.53. In all it was a day of pull back with lackluster activity.

In my opinion, it seems that we are in bear market as today we broke 4800 level intra day though we have not closed below it. It was a day of pull back and one should not be trapped in to such pull backs. In any case for extremely short term traders who can trade pull backs, Nifty might pull back up to 4965 level after that we might see Nifty again drifting down. If one sees signs of Nifty tiring around those level one can short Nifty with stop loss above 5060 and price objective of 4500-4550.

Top five individual stocks which gained today were JETAIRWAYS 7%, SBIN 7%, PANTALOON 5%, BATAINDIA 5% and MRPL 5%.

Top five individual stocks which lost ground were BEML -8%, BEL -5%, PIRHEALTH -5%, TATAMOTORS -4% and STRTECH -4%.

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

Top five individual options which attracted higher activity today were SBIN 1900 CE, SBIN 2000 CE, SBIN 1800 PE, SBIN 1950 CE and SBIN 1850 CE.

Nifty option series where POSITIVE change in open interest was seen were 4700 CE (2.54 LK) 4800 CE (2.30 LK) 5000 CE (1.21 LK) 5100 CE (5.17 LK) 4300 PE (2.60 LK) 4400 PE (2.95 LK) 4700 PE (6.15 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 CE (2.70 LK) 5300 CE (1.90 LK) 4600 PE (5.27 LK) 5100 PE (1.35 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.73 Cr shares and that of Put Options stood at 2.62 Cr shares. Outstanding open interest in In the Money Call Options stood at 45.70 LK shares and that of Put Options stood at 1.71 Cr shares. Put Call Ratio of current series alone stands at 0.83.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 17 2012

Weak Sentiment Prevails: May 17, 2012

Nifty May Futures closed lower at 4852.30 down by 4.60 points. Bank Nifty too closed lower at9085.60 down by 22.45 points. Open Interest in Nifty was up by 7.21 lakh shares at 2.41 Cr shares indicating fresh shorts being created in market. Turnover was slightly lower at Rs 1.14 trillion. Put Call Ratio for both Stocks & Index Options stood almost flat at 0.91 again indicating weak sentiment. Volatility as measured by India VIX was down by 1% at 23.59 and Dollar Rupee duo was trading at 54.68. In all weakness in market persists and no signs of market bottoming out were visible.

As said in several earlier posts, Bull trend seems to have ended and we will drift further even below 200 WMA average which is placed at 4800. If we are able to sustain below 4800 than possibly we might visit earlier low of 4530. My advice for Bulls is to remain on sideline and wait for better opportunity as Bears are heavy on market and might succeed in making new lows. Unless & until we see some bottom formation it is not advisable to go long on market.

Top five individual stocks which gained today were DISHTV 10%, DELTACORP 6%, SRTRANSFIN 5%, AMBUJACEM 5% and MCLEODRUSS 4%.

Top five individual stocks which lost ground were PANTALOONR -6%, VOLTAS -6%, CUMMINSIND -4%, TECHM -4% and PETRONET -4%.

Top five individual stocks which attracted higher volumes were SBIN, TATAMOTORS, BAJAJAUTO, ICICIBANK and LT.

Top five individual options which attracted higher activity today were SBIN 1900 CE, SBIN 1950 CE, SBIN 2000CE, SBIN 1850 CE and SBIN 1800 PE.

Nifty option series where POSITIVE change in open interest was seen were 4800 CE (4.66 LK) 4900 CE (6.61 LK) 5100 CE (2.53 LK) 4600 PE (14.89 LK) 4700 PE (4.39 LK) 4800 PE (2.37 LK) 4900 PE (1.93 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (1.45 LK) 5300 CE (2.05 LK) 4500 PE (2.73 LK) 5000 PE (2.23 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.79 Cr shares and that of Put Options stood at 2.58 Cr shares. Outstanding open interest in In the Money Call Options stood at 40.73 LK shares and that of Put Options stood at 1.79 Cr shares. Put Call Ratio of current series alone stands at 0.84.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 16 2012

Weakness Continues: May 16, 2012

Nifty closed lower at 4856.90 down by 85.35 points. Bank Nifty too closed at 9108.05 down by 176.70 points. Open Interest in Nifty across all the series was up by 4.56 shares at 2.34 Cr shares. Turnover was high at Rs 1.24 trillion. Put Call Ratio of both Stock & Index Options across all the series was fairly flat at 0.92, though it was 0.82 for May Series. Volatility as measured by India VIX was up by 6% at 23.71. Dollar Rupee pair was trading at its highest level of 54.60. In nutshell all the data are pointing towards markets getting worse from this level. Rising Volatility, Weakening Rupee and building of short positions as well as Put Call Ratio below 1 suggests all is not well in the market.

As expressed earlier, I believe that weakness will continue and we might drift lower in coming days. It seems that 200 WMA which is placed at 4800 will also get breached. My advice for traders is to stay away from buying as all the indicators are not conducive for trading. Once we are able to make some meaningful and sustainable bottom, buying can be resumed till that time either stay away or short the market with strict stop loss.

Top five individual stocks which gained today were UNITECH 7%, JISLJAL 6%, DELTACORP 5%, ZEEL 3% and TATAGLOBAL 3%.

Top five individual stocks which lost ground were TATAMOTORS -8%, TATAMTRDVR -7%, ABIRLANUVO -6%, SRTRANSFIN -6% and NAGAROIL -6%.

Top five individual stocks which attracted higher volumes were SBIN, TATAMOTORS, ICICIBANK, TATASTEEL and HDFC.

Top five individual options which attracted higher activity today were SBIN 1900 CE, TATAMOTORS 300 CE, SBIN 1850 CE, TATAMOTORS 280 CE and SBIN 1800 CE.

Nifty option series where POSITIVE change in open interest was seen were 4700 CE (4.96 LK) 4800 CE (10.29 LK) 4900 CE (17.06 LK) 5000 CE (7.69 LK) 5100 CE (6.74 LK) 4300 PE (1.06 LK) 4400 PE (3.30 LK) 4500 PE (9.53 LK) 4600 PE (3.04 LK) 4700 PE (11.54 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 CE (1.86 LK) 5300 CE (1.95 LK) 5400 CE (1.95 LK) 4800 PE (6.34 LK) 4900 PE (7.22 LK) 5000 PE (6.26 LK) 5100 PE (1.45 LK) 5200 PE (1.50 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.79 Cr shares and that of Put Options stood at 2.45 Cr shares. Outstanding open interest in In the Money Call Options stood at 36.51 LK shares and that of Put Options stood at 1.88 Cr shares. Put Call Ratio of current series alone stands at 0.83

Happy Trading

Atul Doshi

Derivatives Daily Update: May 15 2012

Short Covering Day: May 15, 2012

Nifty May Futures closed higher by 54 points at 4942.25. Bank Nifty too closed higher by 105.05 points at 9284.75. Open Interest in Nifty across all the series saw reduction by 3.70 lakh shares at 2.30 Cr shares indicating shorts got covered today. Volumes were higher than yesterday at Rs 1.02 trillion. Put Call Ratio for both Stocks and Future Options was almost flat at 0.92. PCR below 1 indicates traders are not still very confident about the market going up. Volatility as measured by India VIX was down by 4% at 22.28 and Dollar Rupee pair was trading almost unchanged at 53.92. In all some short covering activity was witnessed in the market.

In my opinion since we are trading well below all short term as well as long term moving averages, we are clearly in down trend and any bounce like the one we witnessed today are dead cat bounce and should be avoided for building up any long positions. Level of 4800 is 200 WMA and we need to see that we are able to make any meaningful bottom around this level. Once we settle around this level and move beyond short term average which is placed at 5065, Bulls can become active. Till that time wait for few sessions. Bears can keep stop of  5065 levels and short with price target of 4800.

Top five individual stocks which gained today were INDIAINFO 10%, HCC 7%, NMDC 7%, FINANTECH 6% and MCDOWELL 6%.

Top five individual stocks which lost ground were ORCHIDCHEM -7%, JETAIRWAYS -3%, NTPC -3%, MARUTI -3% and UNIPHOS -3%.

Top five individual stocks which attracted higher volumes were SBIN, LT, TATAMOTORS, ICICIBANK and TATASTEEL.

Top five individual options which attracted higher activity today were SBIN 1900 CE, LT 1200 CE, LT 1250 CE, LT 1100 PE and SBIN 2000 CE.

Nifty option series where POSITIVE change in open interest was seen were 4800 CE (1.07 LK) 5000 CE (1.95 LK) 5100 CE (3.61 LK) 5200 CE (1.99 LK) 4500 PE (6.38 LK) 4700 PE (2.11 LK) 4800 PE (5.62 LK) 4900 PE (3.38 LK) 5000 PE (1.54 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 CE 91.32 LK) 5400 CE (1.55 LK) 5700 CE (2.99 LK) 4600 PE (3.05 LK) 5200 PE (1.20 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.31 Cr shares and that of Put Options stood at 2.97 Cr shares. Outstanding open interest in In the Money Call Options stood at 51.54 LK shares and that of Put Options stood at 1.39 Cr shares. Put Call Ratio of current series alone stands at 0.90

Happy Trading

Atul Doshi

Derivatives Daily Update: May 14 2012

Weak Day: May 14, 2012

Nifty May Futures for the better part of the day didn’t trade due to some technical snag. Any way it closed lower than yesterday and continued its stride downwards. Volatility as measured by India VIX was up by 3% at 23.26. Dollar Rupee pair was trading higher at 54.01. In all markets were under selling pressure and weakness persisted through out the day after opening in a positive zone.

In my opinion, since Nifty has broken 4950 an important retracement support and even closed below it for second day in a row indicates end of the Bull Run.. It is advisable to get out of long positions if one is still holding and wait for the opportune time. Once we close below this level for couple of days, we might drift further. New support might emerge at 4800 levels as this level is 200 WMA. Since daily charts have already weakened we need to see if are able to make any meaningful bottom at around 4800 levels. Trade cautiously and with strict stop loss.

Top five individual stocks which gained today were DIVISLAB 7%, LUPIN 5%, TTKPRESTIG 5%, DABUR 4% and MPHASIS 4%.

Top five individual stocks which lost ground were ORCHIDCHEM -18%, IVRCLINFRA -14%, PRAJIND -11%, BOMDYEING -11% and EDUCOMP -7%

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

Top five individual options which attracted higher activity today were LT 1200 CE, LT 1100 PE, SBIN 1900 CE, LT 1150 CE and SBIN 2000 CE.

Nifty option series where POSITIVE change in open interest was seen were 4800 CE (2.40 LK) 4900 CE (4.53 LK) 5000 CE (5.89 LK) 5100 CE (2.88 LK) 5200 CE (4.30 LK) 4500 PE (3.17 LK) 4700 PE (4.64 LK) 4800 PE (4.86 LK) 4900 PE (2.45 LK) 5100 PE (2.32 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5400 CE (1.45 LK) 5500 CE (1.02 LK) 5700 CE (4.33 LK) 4600 PE (2.05 LK) 5000 PE (1.50 LK) 5200 PE (1.05 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.34 Cr shares and that of Put Options stood at 2.89 Cr shares. Outstanding open interest in In the Money Call Options stood at 52.20 LK shares and that of Put Options stood at 1.49 Cr shares. Put Call Ratio of current series alone stands at 0.90

.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 11 2012

Weakness Persists: May 11, 2012

Nifty May Futures closed lower by 35.45 points at 4931.35. Bank Nifty closed higher by 24.55 points at 9379.35. Open Interest in Nifty across all the series was up by 6 lakh shares at 2.27 Cr Shares. Turnover was up at Rs 1.24 trillion. Put Call Ratio of both Index Options and Stock Options stood saw a down tick and stood at 1. Volatility as measured by India VIX was mildly down by 1% at 22.48. Dollar Rupee pair was trading almost flat at 53.69. In all markets were marred by weak sentiment and made a newer low today. Nifty is constantly remaining under pressure from start of May series.

In my opinion, since Nifty has broken 4950 an important retracement support and even closed below it we are surely in process of ending Bull Run with couple of more lower close to confirm the same. It is advisable to get out of long positions if still one is holding and wait for the opportune time. Once we close below this level for couple of days, we might drift further. New support might emerge at 4800 levels as this level is 200 WMA. Since daily charts have already weakened we need to see if are able to make any meaningful bottom at around 4800 levels. Trade cautiously and with strict stop loss.

Top five individual stocks which gained today were JUBLFOOD 7%, JPASSOCIAT 4%, BAJAAUTO 4%, BATAINDIA 4% and TATAMOTORS 3%.

Top five individual stocks which lost ground were IRB -14%, INDIANB -7%, HINDOILEXP -6%, INDIACEM -6% and TTKPRESTIG -6%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, TATAMOTORS, JSWSTEEL and AXISBANK.

Top five individual options which attracted higher activity today were SBIN 1900 CE, SBIN 2000CE, SBIN 1800 PE, SBIN 2100 CE and SBIN 1950 CE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (13.87 LK) 5100 CE (5.91 LK) 5200 CE (2.80 LK) 4300 PE (1.12 LK) 4400 PE (5.61 LK) 4700 PE (4.95 LK) 4800 PE (9.03 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4600 PE (5.49 LK) 4900 PE (2.48 LK) 5000 PE (4.49 LK) 5100 PE (1.17 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.28 Cr shares and that of Put Options stood at 2.76 Cr shares. Outstanding open interest in In the Money Call Options stood at 44.84 LK shares and that of Put Options stood at 1.50 Cr shares. Put Call Ratio of current series alone stands at 0.90.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 10 2012

Another Listless Day: May 10, 2012

Nifty May Futures closed mildly lower by 17.15 points at 4966.80. Bank Nifty closed lower by 25.05 points at 9354.80. Open Interest in Nifty across all the series was up by 2.80 lakh shares at 2.21 Cr shares. Turnover was lower than yesterday at Rs 1.10 trillion. Put Call Ratio across all the series for both Futures and Options was up at 1.06 indicating some Put writing happening in the market. Volatility as measured by India VIX was lower by 1% at 22.72. Dollar Rupee too was trading steady at 53.70. In all it was again a listless day with negative bias as far as price behavior is concerned.

In my opinion Nifty is attempting to break 4950. As such from last 6 trading session Nifty is making newer lows. If it succeeds in breaking this level and sustaining this break out for couple of days i.e. it closes below this level for couple of days than Bull Run which started from 4530 and ended at 5630 will be over and we might drift further lower. We are trading at crucial level so it is advisable to enter a trade with strict stop loss. To venture a short at crucial support is always a difficult proposition so wait for break out to happen and than enter a short with strict stop loss. It has been often seen that much talked about support or resistance level breaks as bear hammers vehemently at this levels and traders are trapped in to it. Therefore my advice is to watch for breakout and after confirmation of such break out one should venture a trade.

Top five individual stocks which gained today were HEXAWARE 5%, CANBK 5%, CHAMBLFERT 4%, CAIRN 4% and BALRAMCHIN 3%.

Top five individual stocks which lost ground were IVRCLINFRA -6%, GVKPIL -6%, SUZLON -5%, HDIL -5% and SKUMARSYNF -4%.

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

Top five individual options which attracted higher activity today were SBIN 2000CE, SBIN 1950 CE, SBIN 1900 CE, SBIN 2100 CE and SBIN 1800 PE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (1.83 LK) 5000 CE (6.82 LK) 5100 CE (9.18 LK) 5200 CE (3.63 LK) 5300 CE (1.41 LK) 5400 CE (5.40 LK) 4400 PE (1.17 LK) 4500 PE (2.23 LK) 4600 PE (8.41 LK) 4700 PE (5.53 LK) 4800 PE (3.33 LK0 4900 PE (6.60 LK) 5000 PE (22.47 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5300 PE (1.26 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.27 Cr shares and that of Put Options stood at 2.66 Cr shares. Outstanding open interest in In the Money Call Options stood at 29.28 LK shares and that of Put Options stood at 1.72 Cr shares. Put Call Ratio of current series alone stands at 0.95.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 9 2012

Listless Day: May 9, 2012

Nifty May Futures closed lower by 21.65 points at 4983.95. Bank Nifty closed at 9379.85 down by 177 points. Open Interest in Nifty across all series came down by 1.73 lakh shares at 2.18 Cr shares indicating some bull unwinding taking place. Turnover was lower than yesterday at Rs 1.16 trillion. Put Call Ratio saw a marked improvement at 1.03 from 0.91 levels. Volatility as measured by India VIX shot up by 4% at 23.04. Dollar Rupee duo was trading higher at 54.05. Weak Rupee was playing a spoil sport for equity markets. In all it was a listless day with negative bias.

As said in yesterday’s post Nifty is trading at crucial juncture. Level of 4950 is 61.8% retracement point of the last up move which started from 4531 and ended at 5630. It is advisable to watch this level as crucial support. If in coming days we are not able to survive this level we might have ended the Bull Run and thereafter every rise will be a shorting opportunity. Today Nifty has almost tested this level. If we break this level than we might drift lower as breaking of 200 DMA coupled with breaking of important support level will take us 8 to 10% lower from current level. If we are able to hold on this level and again start moving up we will face some resistance at 5355 once we cross 200 DMA which is placed at 5112.

Top five individual stocks which gained today were INDIAINFO 6%, ITC 4%, APOLLOTYRE 3%, CESC 3% and ABGSHIP 3%.

Top five individual stocks which lost ground were HDIL -4%, UNIPHOS -4%, GMDCLTD -3%, UNIONBANK -3% and ANDHRABANK -3%.

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

Top five individual options which attracted higher activity today were SBIN 2000CE, SBIN 1900 PE, SBIN 2100 CE, JPASSOCIAT 70 CE and SBIN 1800 PE.

Nifty option series where POSITIVE change in open interest was seen were 4900 CE (3.10 LK) 5000 CE (8.03 LK) 5100 CE (4.73 LK) 5200 CE (4,62 LK) 5300 CE (2.56 LK) 5500 CE (1.54 LK) 4400 PE (1.84 LK) 4500 PE (2.74 LK) 4600 PE (1.53 LK) 4700 PE (1.80 LK) 4800 PE (7.94 LK) 4900 PE (21.32 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5600 CE (1.44 LK) 5200 PE (1.69 LK)

Outstanding open interest in Out of the Money Call Options stood at 4.05 Cr shares and that of Put Options stood at 2.45 Cr shares. Outstanding open interest in In the Money Call Options stood at 27.24 LK shares and that of Put Options stood at 1.75 Cr shares. Put Call Ratio of current series alone stands at 0.97.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 8 2012

Weakness Continues: May 8, 2012

Nifty May Futures closed at 5005.60 down by 120.35 points. Bank Nifty too was vulnerable and closed at 9556.85 down by 315.50 points. Open Interest in Nifty across all the series saw a whooping increase by 19 lakh shares at 2.20 Cr shares indicating fresh shorts in large proportions created in the Nifty Futures. Turnover was slightly lower than yesterday at Rs 1.27 trillion. Put Call Ratio came down to 0.91 indicating traders are writing Calls against Puts which again doesn’t augur well for Bulls. Volatility as measured by India VIX shot up by 10% at 22.16 and Dollar Rupee pair too was trading slightly higher at 53.43 indicating pressure on Rupee which again is not a good sign. In nutshell it was a day of Bears who found the opportunity to sell in the market as they saw momentum in the market was waning out.

In my opinion, Nifty is not able to hold on the gains and it completely gave away all its gains and closed lower today indicating weak trend in the market. We are at crucial juncture as 4987 is 61.8% retracement level of last Bull Run. If Nifty is not able to sustain this level Bull scenario will be construed to be over and every rise thereafter will be a shorting opportunity. As long as we are holding this level on closing basis and we are able to find some buying emerging at this level, we might see Nifty attempting to reach 5300 levels. If such scenario plays out than we might have made intermediate bottom around this level which will act as good support in coming days.

Top five individual stocks which gained today were PETRONET 4%, TTKPRESTIG 3%, BOSCHLTD 3%, BHARATFORG 3% and CESC 2%. 

Top five individual stocks which lost ground were CENTRALBK -13%, JPASSOCIAT -9%, INDIAINFO -8%, PANTALOON -8% and GMRINFRA -8%.

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

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2200 CE, RELIANCE 720 CE, SBIN 1900 PE and SBIN 2000CE.

Nifty option series where POSITIVE change in open interest was seen were 5000 CE (11.64 LK) 5100 CE (11 LK) 5200 CE (12.36 LK) 5300 CE (7.93 LK0 5400 CE (10.19 LK) 5500 CE (3.68 LK) 4400 PE (1.26 LK) 4500 PE (3.41 LK) 4700 CE (7.90 LK) 4800 PE (9.83 LK) 4900 PE (10.92 LK) 5000 PE (2.59 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5600 CE (1.13 LK) 5100 PE (2.92 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.88 Cr shares and that of Put Options stood at 1.96 Cr shares. Outstanding open interest in In the Money Call Options stood at 23.80 LK shares and that of Put Options stood at 1.81 Cr shares. Put Call Ratio of current series alone stands at 0.91.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 7 2012

Smart Recovery: May 7, 2012

Nifty May futures after making low of 5001 closed at 5125.95 up by 28 points. Bank Nifty closed higher by 78.45 points at 9872.35 points. Open Interest in Nifty across all the series came down by 2.53 lakh shares at 2.03 Cr shares indicating some short covering in the market. Turnover was higher at Rs 1.36 trillion. Put Call Ratio was almost unchanged at 0.96. Volatility as measured by India VIX was down by 4% and Dollar Rupee duo was trading lower at 53.16. In nutshell, it was a day of short recovery and Nifty managed to close higher than yesterday.

In my opinion, as expressed in yesterday’s post we have broken important support level of 5150 and 200 DMA of 5130 (cash basis). As said once we break this level we will visit 5000 level. We have tested 5000 level today and have bounced back from those levels but failed to close above 200 DMA of 5130. If Nifty in coming days is not able to hold 4987 which is 61.8 % retracement level of last move, bullish scenario will be construed to be over. Today we have bounced back from 4990 level and it is required that we hold on this level and close above 5130 on closing basis for couple of days.

Top five individual stocks which gained today were JSWSTEEL 9%, JETAIRWAYS 8%, DELTACORP 7%, BFUTILITIE 6% and RPOWER 6%.

Top five individual stocks which lost ground were TTKPRESTIG -13%, IRB -7%, UNITECH -7%, CENTRALBK -5% and ALBK -5%.

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

Top five individual options which attracted higher activity today were SBIN 2100 CE, SBIN 2000 CE, SBIN 2200 CE, SBIN 1900 PE and SBIN 1800 PE.

Nifty option series where POSITIVE change in open interest was seen were 4800 CE (4.26 LK) 4900 CE (1.27 LK) 5000 CE (8.70 LK) 5100 CE (3.84 LK) 5200 CE (8.47 LK) 5300 CE (5.03 LK) 5400 CE (1.66 LK) 5700 CE (8.67 LK) 4600 PE (10.97 LK) 4800 PE (7.90 LK) 4900 PE (6.52 LK) 5000 PE (3.35 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 PE (5.12 LK) 5300 PE (3.36 LK)

Outstanding open interest in Out of the Money Call Options stood at 3.19 Cr shares and that of Put Options stood at 2.37 Cr shares. Outstanding open interest in In the Money Call Options stood at 42.94 LK shares and that of Put Options stood at 1.18 Cr shares. Put Call Ratio of current series alone stands at 0.98

.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 4 2012

Day of Sell Off: May 4, 2012

Nifty May Futures closed lower by 101.85 points at 5097.95. Bank Nifty closed at 9793.90 down by 321.65 points. Open Interest in Nifty across all series was up by 4.62 lakh shares at 2.03 Cr shares indicating fresh shorts being created in the market. Turnover was higher at Rs .12 trillion. Put Call Ratio was marginally up at 0.96. Volatility was drastically up by 10% at 21.12 and Dollar Rupee pair was trading at 53.78/ In all it was a day of sell off.

In my opinion as we have broken important support level of 5150 and also 200 DMA of 5120 further sell off can be witnessed in market which might help Nifty to drift to 5000 levels. Whether Nifty falls further will have to be seen in coming days. If Nifty manages to close below its 200 DMA for consecutive couple of days, bullish scenario shall be said to have been vitiated. Let us see what happens in coming days.

Top five individual stocks which gained today were RUCHISOYA 4%, SOBHA 4%, CIPLA 3%, ESSAROIL 3% and COREEDUTEC 2%. 

Top five individual stocks which lost ground were IRB -15%, PANTALOON -14%, MRF -8%, FINANTECH -7%, HINDOILEXP -7% and BFUTILITIE -6%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, AXISBANK, TATAMOTORS and BANKBARODA.

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2000 PE, SBIN 2100 CE, SBIN 2300 CE, SBIN 2150 CE.

Happy Trading

Atul Doshi

Derivatives Daily Update: May 3 2012

Lack luster Day: May 3, 2012

Nifty May Futures closed lower at 5199.80 down by 47.15 points. Bank Nifty too closed lower at 10115.55 down by 155.40 points. Turnover was better at Rs 812 bn. Open Interest in Nifty across all series saw an increase by nearly 2 lakh shares at 1.99 Cr shares. Put Call Ratio also saw some improvement and was at 0.94. Volatility as measured by India VIX was up by 4% at 19.25 and Dollar Rupee was trading very strong at 53.69. In all it was a dull day with some pressure being felt on price movements due to increased volatility and weak rupee.

My prognosis is still bullish as long as we don’t break 5150 (cash levels) on closing basis. Every dip warrants a buy with a stop below 5150 and price target of 5550 -5600 with minor resistance at 5350 levels.

Top five individual stocks which gained today were UNIPHOS 6%, COREEDUTEC 5% RENUKA 5%, ARVIND 5% and RAYMOND 3%.

Top five individual stocks which lost ground were IRB -11%, NCC -8%, HEROMOTORCO -8% VIPIND -7% and ABIRLANUVO -6%.

Top five individual stocks which attracted higher volumes were SBIN, ICICIBANK, AXISBANK, TATAMOTORS and HEROMOTORCO.

Top five individual options which attracted higher activity today were SBIN 2200 CE, SBIN 2300 CE, SBIN 2150 CE, SBIN 2100 PE and SBIN 2000 PE.

Nifty option series where POSITIVE change in open interest was seen were 5100 CE (1.06 LK) 5200 CE (8.32 LK) 5300 CE (7.30 LK) 5400 CE (1.77 LK) 5600 CE (3.34 LK) 4600 PE (2.53 LK) 4700 PE (1.67 LK) 4800 PE (1.70 LK) 5000 PE (7.01 LK) 5100 PE (8.37 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4900 PE (1.20 LK) 5200 PE (3.40 LK) 5300 PE (1.72 LK) 5500 PE (2.32 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.49 Cr shares and that of Put Options stood at 2.19 Cr shares. Outstanding open interest in In the Money Call Options stood at 31.76 LK shares and that of Put Options stood at 99.59 LK shares. Put Call Ratio of current series alone stands at 1.13

Happy Trading

Atul Doshi

Derivatives Daily Update: May 2 2012

Consolidation Day: May 2, 2012

Nifty May Futures closed at 5246.95 lower by 20.90 points. Bank Nifty too closed at 10270.95 lower by 1.25 points. Turnover was slightly better at Rs 698 bn. Open Interest saw a reduction by 1.31 lakh shares at 1.97 Cr shares. Put Call Ratio was down at 0.89 which does not augur well for the market as traders are not gung ho about the market and they are writing Calls against Put. Alternatively though it may act as support if market fall. Volatility as measured by India VIX saw improvement by 4% and stood at 18.54. Dollar Rupee pair too was strong at 53.26 which too doesn’t augur well for Indian equity markets. All in all it was a day of consolidation in a very narrow band.

In my opinion as long as we remain above 5150 there is still hope that we will be able to touch 5550-5600. Only worrying factor is VIX. If VIX shoots up in coming days in a big way than market might fall as VIX has generally inverse correlation with price movement in Indices.

Top five individual stocks which gained today were SUNTV 6%, TITIAN 5%, TTKPRESTIG 4%, UNIPHOS 3% and DLF 3%.

Top five individual stocks which lost ground were NCC -6%, ASHOKLEY -5%, TATAMTRDVR -5%, VIPIND -5% and CENTURYTEX -4%.

Top five individual stocks which attracted higher volumes were SBIN, TATAMOTORS, PANTALOON, ICICIBANK and BHARTIARTL.

Top five individual options which attracted higher activity today were SBIN 2200 CE, TATAMOTORS 320 CE, ICICIBANK 900 CE, SBIN 2300 CE and BHARTIARTL 320 CE.

Nifty option series where POSITIVE change in open interest was seen were 5300 CE (8.02 LK) 5400 CE (6.28 LK) 5500 CE (2.74 LK) 5600 CE (3.77 LK) 100 PE (1.78 LK) 5200 PE (9.24 LK) 5300 PE (2.98 LK) 5500 PE (2.36 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5200 PE (1 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.09 Cr shares and that of Put Options stood at 2.49 Cr shares. Outstanding open interest in In the Money Call Options stood at 53.49 LK shares and that of Put Options stood at 62.41 LK shares. Put Call Ratio of current series alone stands at 1.18.

Happy Trading

Atul Doshi