Derivative market update
Since last few days we had been clearly pointing out that nifty will face strong resistance between 5360 and 5400. As markets have already rallied from the recent low it could become more choppy and stock specific.
However, on decline nifty has strong support at 5260 and the current chart structure indicates that 5375 for nifty is key level to watch and if nifty closes above this we can see next rally attempting to touch 5500. On intraday basis 5300 for nifty will act as support while 5400 as resistance.
Nifty August 2012 futures closed at 5371.90 on Monday at a premium of 24.00 points over spot closing of 5,347.90.
Nifty September 2012 futures were at 5398.25 at a premium of 50.35 points over spot closing.
Nifty August futures saw an addition of 0.95 million (mn) units taking the total outstanding open interest (OI) to 25.29 mn units. The India VIX witnessed contraction of 0.37% at 16.01 as compared to its previous close of at 16.07 on Friday.
The Nifty Put Call Ratio (PCR) OI wise stood at 1.61 for August -month contract.
Nifty calls, 5500 SP from the August month expiry was the most active call with an addition of 0.02 million open interest.
Nifty puts, 5000 SP from the August month expiry was the most active put with contraction of 0.17 million open interest.
The maximum OI outstanding for Calls was at 5500 SP (8.56 mn) and that for Puts was at 5000 SP (10.40 mn).
Long positions were witnessed in stocks like MCDOWELL-N AND JETAIRWAYS
Short positions were witnessed in stocks like BHARATFORG & EDUCOMP
Source: LKP Securities
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