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Saturday, 9 June 2012

Derivatives Daily Update: June 8 2012


Stable Day: June 8, 2012

Nifty June Futures closed higher by 30 points at 5059.40. Bank Nifty closed higher by 83.70 points at 9939.50. Open Interest in Nifty across all the series saw negligible reduction by 10 k shares at 1.79 Cr shares. Turnover was slightly higher at Rs 1.05 trillion. Put Call Ratio for both Index and Stock Options across all the series on consolidated basis was unchanged at 1.06 though for only Nifty and that for June series was higher at 1.70 indicating traders are confident about the markets moving up in shorter term time frame. Volatility as measured by India VIX was marginally down by 1% at 23.47. Dollar Rupee pair was trading bit higher at 55.66. In all it was a stable day with prices moving up and closing higher for the 4th consecutive day.

As said in several earlier post, this up moves are correction of bear trend and pull back in prices can continue up to 5160 and maximum up to 5228. Level of 5228 is difficult to be breached but if in case markets move up and close on sustained basis above 5228 than bear trend will be over and we will have to think in term of Bullish outlook. As long as it is not able to breach this level, sell at every rise is warranted with stop above 5160 and 5228 and price target of 4800.

Top five individual stocks which gained today were JETAIRWAYS 9%, SUNTV 9%, HDIL 6%, IVRCLINFRA 6% and TATACOFFEE 6%.

Top five individual stocks which lost ground were BEML -6%, INDIACEM -5%, NAGAROIL -3%, ONMOBILE -3% and AUROPHARMA -3%

Top five individual stocks which attracted higher volumes were SBIN, HDIL, ICICIBANK, LT and RELINFRA.

Top five individual options which attracted higher activity today were SBIN 2200CE, SBIN 2100PE, JPASSOCIAT 75CE, SBIN 2300CE and SBIN2150CE.
Nifty option series where POSITIVE change in open interest was seen were 5200CE (3.05 LK) 4400 PE (4.57 LK) 4500PE (2.81 LK) 4700PE (2.48 LK) 5000PE (10.22 LK) 5100PE (3.26 LK)

Nifty option series where NEGATIVE change in open interest was seen were 4800CE (-2.26 LK) 4900CE (-4.72 LK) 5000CE (3.01 LK) 5300CE (-4.39 LK) 5400CE (-1.50 LK) 4900PE (-1.21 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.02 Cr shares and that of Put Options stood at 4.87 Cr shares. Outstanding open interest in In the Money Call Options stood at 1.15 Cr shares and that of Put Options stood at 51.17 LK shares. Put Call Ratio of current series alone stands at 1.70

Happy Trading

Atul Doshi

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