Thursday, May 7, 2009

>Daily Derivatives (ICICI Direct)

Derivative Comments

• The Nifty May series added 1.01 million shares in OI with drop in price by 34 points. During the day, the Nifty managed to hold the premium of 7-8 points. However, in the last half an hour, the premium surged to 10-12 points on the back of short covering by intraday traders since people were wary of carrying overnight short positions

• The near month options data shows addition of 46644 contracts in Put options compared to 15004 contracts addition in Calls. The maximum addition was seen in the 3200 Put with 17676 contracts followed by 9514 contracts in the 3600 Put. The 3400 and 3500 Puts added 6514 and 5712 contracts, respectively. On the other hand, 5863 contracts got added in the 3900 Call followed by 4115 contracts addition in 4000. Some Call writing was seen in 3900 and 4000 while Put writing was observed in 3200. The 3600 Put also witnessed some Put writing. The 3600 continues to hold as a support for Nifty and one can look for buying opportunity near that level

• The FII activity in F&O was almost negligible

• Heavyweight Reliance has added 5 lakh shares in OI. The stock is expected to trade with positive bias today

To see full report: DERIVATIVES 070509