Derivatives Daily Update: July 19 2012

Better Day: July 19, 2012

Nifty July Futures closed at 5257 up by 33.45 points. Bank Nifty closed at 10640 up by 11.90 points. Open Interest across all the series was up by 6.39 lakh shares indicating mop up by Bulls. Turnover was slightly lower at Rs 1.12 trillion. Put Call Ratio across all the series and for both Index & Stock Options was trading much better at 1.09 indicating confidence returning back. Volatility too was down by 6% at 16.38 again adding confidence to market. Dollar Rupee pair was trading slightly lower at 55.19 helping to better sentiment. In all it was a better day with returning of some confidence back.

In my opinion, for extremely short term traders Nifty is till trading in a range of 5200-5300 so they can play this range with upward bias. For long term traders it is advisable to hold long till 5070 is breached on lower side with price target of 5500.

Top five individual stocks which gained today were DISHTV 5%, GMRINFRA 4%, TTKPRESTIG 4%, MCDOWELL 4% and MRPL 4%.

Top five individual stocks which lost ground were MARUTI -9%, IDEA -4%, GODREJIND -4%, BANKBARODA -3% and KOTAKBANK -3%.

Top five individual stocks which attracted higher volumes were MARUTI, SBIN, ICICIBANK, INFY and HEROMOTOCO.

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

Nifty option series where POSITIVE change in open interest was seen were 5400CE (1.05 LK) 5200PE (10.87 LK) 5300PE (4.26 LK)

Nifty option series where NEGATIVE change in open interest was seen were 5000CE (1.29 LK) 5200CE (3.41 LK) 5600CE (1.43 LK) 4900PE (2.88 LK) 5000PE (5.09 LK)

Outstanding open interest in Out of the Money Call Options stood at 2.92 Cr shares and that of Put Options stood at 4.11 Cr shares. Outstanding open interest in In the Money Call Options stood at 80.22 LK shares and that of Put Options stood at 58.97 LK shares. Put Call Ratio of current series alone stands at 1.26.

Happy Trading

Atul Doshi