Derivatives Daily Update: July 13 202

Lackluster Week End: July 13, 2012

Nifty July Futures closed lower by 10.95 points at 5240.45. Bank Nifty closed lower by 15.55 points at 10617.15. Open Interest in Nifty across all the series increased by 8 lakh shares at 2.64 Cr shares indicating fresh shorts being created in the market. Turnover was lower at Rs 989 bn largely due to range bound movement. Put Call Ratio was almost unchanged at 0.93 and for Nifty alone in current series it further came down to 1.30 indicating hesitant mood on the part of participants as they were writing more Calls against Puts as well as unwinding Put Options. Volatility as measured by India VIX was down 2% at 18.26. Dollar Rupee duo was also trading bit lower at 55.27. In all it was a week day with lackluster activity probably due to week end.

In extremely short run markets have again become range bound and traders are advised to play the broad range of 5200-5325. In medium to long term as long as we remain above 5050 target of 5500 is still achievable. Let us see what new week has in offing for us.

Top five individual stocks which gained today were MTNL 4%, DCB 4%, SINTEX 3%, SRTRANSFIN 3% and BFUTILITIE 3%.

Top five individual stocks which lost ground were FINANTECH -4%, HDIL -4%, JINDALSTEL -4%, GMRINFRA -4% and UNITECH -3%.

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

Top five individual options which attracted higher activity today were TCS 1300CE, TCS 1250CE, TCS 1250PE, INFY 2300CE and TCS 1200PE.

Nifty option series where POSITIVE change in open interest was seen were 5300CE (8.38 LK) 5400CE (9.80 LK) 4900PE (4.02 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5100CE (1.60 LK) 5500CE (3.93 LK0 5600CE (2.04 LK) 4700PE (1.55 LK) 4800PE (4.21 LK) 5000PE (1.86 LK) 5200PE (3.48 LK) 5300PE (3.76 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.93 Cr shares and that of Put Options stood at 4.17 Cr shares. Outstanding open interest in In the Money Call Options stood at 88.82 LK shares and that of Put Options stood at 80.94LK shares. Put Call Ratio of current series alone stands at 1.30.

Happy Trading

Atul Doshi