16 March 2011

Angel Broking -Derivative Report India Research Mar 16, 2011

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Comments
 The Nifty futures’ open interest increased by 4.84% while
Minifty futures’ open interest  decreased  by 4.42% as
market closed at 5449.65 levels.
 The Nifty  March future closed at a discount of 2.05
points, against  a premium of 23.80 points  in the last
trading session. On the other hand, April future closed at
a premium of 21.05 points.
 The PCR-OI decreased from 1.33 to 1.29 levels.
 The Implied volatility of At-the-money  options increased
from 21.30% to 26.50%.
 The total OI of the market is `1,38,502cr and the stock
futures OI is `31,207cr.
 Few liquid stocks where cost of carry is positive are
JPASSOCIAT, IRB, MCLEODRUSS, TV-18 and ISPATIND.


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 FIIs  formed short positions in the Index futures and
the stock futures though they were net buyers of
`148cr in the cash market segment.
 Yesterday, considerable unwinding was observed in
the 5400 and 5500 put options, while some build up
was observed in the 5500 and 5700 call options.
 JINDALSTEL is showing weakness from higher levels.
Base metal prices are also down. Sell on rise strategy
can be adopted around `670 for the target of `646
with a stop loss of `680.
 Forming  aggressive long positions in the market  is
not  advisable however day  traders can trade with
positive bias in PTC. Stock is trading  around its
support levels. Due to short covering  it may give a
positive move up to `83.50-84. Keep a stop loss of
`80.

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