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Thursday, 9 August 2012

Derivatives Daily Update: August 9 2012


Day of Consolidation: August 9, 2012


Nifty August Futures closed at 5350.05 down by 4.70 points. Bank Nifty closed at 10505.70 down by 53.45 points. Open Interest in Nifty across all the series was up by 3,26 lakh shares at 2.59 Cr shares. Turnover was lower than yesterday at Rs 1.03 trillion. Put Call Ratio across all the series for both Index and Stock Options was at 1.01 up from yesterday’s level. Volatility as measured by India VIX was lower at 16.33 and Dollar Rupee pair was trading at 55.45 almost unchanged from yesterday’s level. In all it was a range bound day with negative bias in banking shares.

In my opinion we are consolidating in a range and as long as we remain above 5200 we will break this range on upper side with potential target of 5500. Only cause of worry is banking shares which are giving in their gains and as Banks form important part of Nifty composition it might drag Nifty down. As of now Nifty is getting support from other components especially FMCG and Reliance. Technically, I am bullish in the market but as always it is safe to play with adequate Stop loss.

Happy Trading

Atul Doshi

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