Derivative Report-Angel Broking, India Research Jan 17, 2011

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��


Comments
 The Nifty futures’ open interest increased by 7.28% while
Minifty futures’ open interest increased by 5.61% as
market closed at 5654.55 levels.
 The Nifty Jan future closed at a discount of 0.55 points,
against a premium of 3.90 points in the last trading
session. On the other hand, Feb future closed at a
premium of 24.25 points.
 The PCR-OI has decreased from 0.94 to 0.90 levels.
 The Implied volatility of At-the-money options has
increased from 21.50% to 22.25%.
 The total OI of the market is `1,52,402cr and the stock
futures OI is `36,093cr.
 Few liquid counters where cost of carry is positive are
TV-18, PATELENG, GTLINFRA, KFA, and ULTRACEMCO
View
 FIIs have formed some long positions in the Index
futures and a blend of short covering and some long
formations have also been observed in the stock
futures. At the same time, they were net sellers of
`749cr in the cash market segment.
 In the last trading session, the 5600 and 5700 calls,
and 5500 and 5600 put options added huge open
interest. These are mainly buying of the options, as
Implied Volatility has increased and FIIs are also
buying options.
 Continuous shorting is observed in MARUTI. Cost of
carry is also negative. We may see further correction
in the stock. Thus, traders can trade with negative
bias around `1,270-`1,275 for the target of `1,220
with a stop loss of `1,300.
 GAIL has strong support around `480. In the past
few trading sessions significant build up was also
observed in the stock. Any dip around support can be
use to trade with positive bias for the target of `500
with a stop loss of `470.