>Derivative Strategy (MICROSEC)

ANALYSIS OF FUTURE AND OPTIONS MARKET

HIGHLIGHTS

* Nifty opened flat to weak but fell to test a low of 2735 in early trade. It recovered from there and a late surge helped it close higher by 0.84%. However, the breadth of the market was negative.

* Inflation for the week ended 14th Feb came at 3.36%

* Nifty Call options of strike 2800 added 22254 lots to open interest while Put options of strike 2700 had a build up of 31790 lots. Put options of strike 2500 also added 25290 lots to open interest.

* Nifty Put Call ratio (OI) stands at 1.17 with the total open interest in Call options at 1,038,639 lots and that in Put options at 1,215,329 lots

* Ultratech Cement, Mphasis BFL, Chambal Fertilizers, Hero Honda Motors, Infosys
Technologies, NTPC and Cipla Ltd look good

* Volatility Index fell by 4.94% from 41.94 to 39.87.

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