Derivative market update: LKP Securities
Once again markets ended flat after series of intraday whip saw. Though there is more clarity on trend after indices managed to breakout above resistance zone markets are consolidating their gains.
We maintain our stance that nifty is finding difficult to stay above 5300 since last three days but, no sooner it stays above this the immediate next challenge for nifty is 5360. Based on last three days trading fall below 5260 could turn the short term trend to weak. The recent breakout will slowly bring change in perception of market participants and we could see strengthening of trend
Nifty July 2012 futures closed at 5,322.65 at a premium of 20.10 points over spot closing of 5,302.55.
Nifty August 2012 futures were at 5349.45 at a premium of 46.90 points over spot closing.
Nifty July futures saw an addition of 0.64 million (mn) units taking the total outstanding open interest (OI) to 23.29 mn units.
The India VIX witnessed contraction of 1.56% at 18.27 as compared to its previous close of at 18.56 on Tuesday.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.48 for July -month contract.
The respective Support and Resistance levels are: Resistance 5322.36 -- Pivot Point 5297.83--Support 5278.01.
Nifty calls, 5400 SP from the July month expiry was the most active call with an addition of 0.62 million open interest.
Nifty puts, 5000 SP from the July month expiry was the most active put with an addition of 0.31 million open interest.
The maximum OI outstanding for Calls was at 5400 SP (6.40mn) and that for Puts was at 5000 SP (6.91mn).
Long positions were witnessed in stocks like STRTECH AND JSWISPAT.
Short positions were witnessed in stocks like INDIACEM AND ONGC.
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