Derivative market update
While markets remained in a narrow range of 100 points for three weeks our bias was always positive as nifty consolidated above 5050. During this phase we continuously believed that bottom formation process is going on.
Further, indices sustaining above 200 days SMA also added to the optimism. The breakout on Friday could bring sea change in perception of market participants. Since nifty crossed 4960 we had been maintaining our stance that it could reverse the medium term trend.
Nifty July 2012 futures closed at 5,295.60 at a premium of 17.00 points over spot closing of 5,278.60.
Nifty August 2012 futures were at 5320.90 at a premium of 42.30 points over spot closing.
Nifty July futures saw an addition of 0.37 million (mn) units taking the total outstanding open interest (OI) to 22.01 mn units.
The India VIX witnessed contraction of 0.37% at 19.01 as compared to its previous close of at 19.08 on Friday.
Nifty Put Call Ratio (PCR) OI wise stood at 1.49 for July -month contract.
The respective Support and Resistance levels are: Resistance 5299.38-- Pivot Point 5281.36--Support 5260.58.
Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.66 million open interest.
Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.15 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (5.26mn) and that for Puts was at 5000 SP (6.40mn).
Long positions were witnessed in stocks like UNITECH AND PNTALOONR.
Short positions were witnessed in stocks like ONMOBILE AND TATAMOTORS.
Stocks to watch out from the long side for today are LITL AND HCC
Source: LKP Securities
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