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Wednesday, 9 May 2012

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

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