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Monday, 21 May 2012

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

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