Monday, April 13, 2009

>Daily Derivatives (ICICI Direct)

Derivative Comments
• The Nifty April futures added 1.07 million shares in OI
with the current OI at 42 million shares. The FII data on
Index futures depicts further accumulation of long
positions to the tune of Rs 614 crore. We feel
noteworthy long positions have been formed in the
Nifty since the past couple of sessions
• The action in the option segment was more or less
similar to Wednesday. Humongous accumulation of
contracts was seen in the 3300 Put, which added
25371 contracts. The 3200 Put added 11911 contracts
while 3400 added 12800 contracts in OI. The IVs of all
these Put options have dropped suggesting Put writing
at these strikes. Unwinding of 12400 contracts in OI in
3000 Put indicates profit booking by some Put writers.
On the other hand, short covering by Call writers was
seen in Call options ranging from 2900 to 3300.
Addition of OI was seen in Call options ranging from
3400 to 3900 wherein the maximum accumulation was
observed in 3400 Call, which added 10817 contracts in
OI followed by 8974 and 6496 contracts addition in
3500 and 3600 Calls, respectively. The rise in IVs of
OTM Calls suggests some Call buying has happened in
3700 and 3800 options. The positive momentum is
likely to continue in the Nifty wherein 3300 could
continue to act as a strong support on a closing basis

To see full report: DERIVATIVES 130409

>Weekly Derivatives (ICICI Direct)

To see report: DERIVATIVES 130409

>Weekly Calls (ICICI Direct)

To see report: CALLS 130409

>Daily Calls (ICICI Direct)

Sensex: We said, "One may remain positive, but trade cautiously at higher level." Caution paid off as Index reacted over 200 points from its highs, at least twice intra-day. While Sensex closed flat, Realty / Metals / Banks and even broader market outperformed. A/D ratio cooled down, though it was still
positive at 2:1.
The action formed a bear candle, but an UP day with higher high & higher low compared to previous day. Each segment of rally post-8047 showed consecutive five higher highs, before correcting couple of days. Failure to cross day's high of 10932 can, therefore, lead to a similar development. Cautiously positive otherwise.

To see full report: CALLS 130409

>Daily Market & Technical Outlook (ICICI Direct)

Market outlook
* Indian markets are likely to open positive, taking cues from the global markets. The SGX Nifty was trading 30 points higher in the morning. Other Asian markets were trading in a narrow band in the morning after most major overseas centres were closed on Friday due to the long Easter weekend. US stocks rose for the fifth week as the outlook for US banks was more optimistic after Wells Fargo’s forecasted better-than-expected quarterly results kept sentiments positive. US investors are keenly awaiting more US bank results due this week, including Citigroup on Friday. We believe Indian markets will remain
volatile and trade in a range. The rupee could open higher on Monday as local shares are expected to rise, raising expectations of capital flows that would support the currency

* The Sensex has supports at 10730 and 10660 and resistances at 10940 and 11090. The Nifty has supports at 3320 and 3300 and resistances at 3390 and 3450

* Asian stocks gained, after Japanese Prime Minister Taro Aso more than doubled stimulus spending and Chinese lending rose by a record. The Nikkei fell 4.9 points, or 0.1%, to trade at 8,957.6. Hong Kong markets are closed for the Easter Monday holiday

* US stocks rose sharply on Thursday after an upbeat forecast from Wells Fargo, capping their fifth straight up week. The Dow Jones gained 246.3, or 3.1%, to close at 8,083.4. The S&P 500 rose 3.8% and the Nasdaq advanced 3.9 %

* Stocks in news: Madras Cements, Siemens, HCL, Nestle India, Alok
Industries, GAIL.

To see full report: OPENING BELL 130409