Derivatives Daily Update: July 16 2012

Weak Day: July 16, 2012

Nifty July Futures closed at 5206.85 down by 33.60 points. Bank Nifty too closed lower at 10578.40 down by 38.75 points. Open Interest in Nifty across all the series was up by 4.72 lakh shares at 2.68 Cr shares. Turnover was up at Rs 1.07 trillion. Put Call Ratio across all the series for both Index & Stock Options was notch down at 0.92 and for Nifty alone in current series was down by 5 notches at 1.25. Volatility as measured by India VIX was up by 3% at 18.77 and Dollar Rupee pair was trading at 55.35. In all it was a weak day and market was showing some weariness amongst the traders.

As said earlier we are trading in extreme range of 5200-5325. In short term, traders are advised to trade this range. Short term traders should buy in fall with stop loss below 5200 and sell around higher end of the band with stop loss above 5350. Long term and positional traders should hold their long till 5070 is breached on closing basis. Add to your longs only when it closes above 5340.

Top five individual stocks which gained today were BHARTIARTL 4%, GODREJIND 3%, LUPIN 3%, CROMPGREAVE 2% and CUMMINSIND 2%.

Top five individual stocks which lost ground were ONMOBILE -6%, ADANIENT -5%, NCC -4%, JSWISPAT -4% and TATASTEEL -4%.

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

Top five individual options which attracted higher activity today were INFY 2200CE, IBFY 2200PE, INFY 2300CE, SBIN 2200CE and INFY 2250CE.

Nifty option series where POSITIVE change in open interest was seen were 5200CE (8 LK) 5300CE (10.60 LK) 5400CE (1.95 LK) 4800PE (1.55 LK) 4900PE (1.98 LK) 5000PE (5.01 LK) 5100PE (2.48 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5600CE (1.40 LK) 5200PE (3.24 LK) 5300PE (5.25 LK) 5400PE (3.67 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.98 Cr shares and that of Put Options stood at 4.19 Cr shares. Outstanding open interest in In the Money Call Options stood at 93.66 LK shares and that of Put Options stood at 70.71 LK shares. Put Call Ratio of current series alone stands at 1.25.

Happy Trading

Atul Doshi