>Weekly Derivatives (ICICI Direct)

NIFTY HIGHLIGHTS:

* The Nifty Spot has risen by 0.20% to close at 3474 from the previous week’s close of 3480

* The total futures OI in the market stands at Rs 40780 crore whereas all options OI stands at Rs 60502 crore Futures Vol(In Shares) Nifty Spot Nifty Future

TECHNICAL OUTLOOK

• The Nifty formed ‘Hanging Man’ like pattern on the weekly charts. Although this is not a bearish pattern, it could turn out to be a bearish one, if the market trades below the close of the week at 3474

• On the other hand, firm trading above the weekly high of 3520, would trigger further upsides up to 3,630

• On the downside, good support appears around 3350-3300 levels

• We expect the Nifty to trade in the range of 3630–3300 levels for the coming week

• The resistance appears at 3525 and 3630, whereas support exists around 3400, 3360 levels

To see full report: DERIVATIVES 040509

>Weekly Calls (ICICI Direct)

To see report: CALLS 040509

>Daily Derivatives (ICICI Direct)

Derivative Comments

• The rollovers in the Nifty surged above expectation at 74.03%. On the expiry day, significant short covering to the tune of 4.95 million shares was seen in April series while May series added 8.48 million shares with the current May OI at 36.09 million shares in OI. The rise in Nifty price by 3.32% was basically on account of short covering. Moreover, some long rollover was also seen in May wherein the premium jumped to 9.15 points

• The May series options data shows maximum Call OI currently standing at 3400 with 2.97 million shares while the largest Put OI base also is at 3400 with 3.09 million shares. On the expiry day we saw addition of 26000 contracts in the 3400 Put followed by addition of 12369 and 12495 contracts in 3300 and 3200 Puts, respectively. The IVs of these options are 3200-46.64,3300-45.26 and 3400-43.24. Put writers were having a strong hand at 3400 in the last session. The 3500, 3600 and 3800 Calls each added nearly 9500 contracts in OI while the 3400 and 3700 added nearly 6000 contracts. High volumes and drop in IVs of 3700 and 3800 Call depicts some Call writing in these strikes, which could also be due to the long weekend. Markets are likely to take support at 3400 on a closing basis today

• FII Index futures and options shows noteworthy unwinding in OI on account of expiry of April series.

To see full report: DERIVATIVES 040509

>Daily Calls (ICICI Direct)

Sensex: We said, "protecting the low (10961) can appear as an attempt to hold the 31-day long Green support line." Index held 10961, with its low exactly at the Green line, and recovered as much as 400 points or 3.6% on the Settlement day. IT Index moved 5% higher. A/D ratio turned positive at 3:1.

The action formed a Belt Hold Line Bull candle, indicating bulls' attempt to hold the Green line. Its high was testing 3-week resistance near 11400-500. Trading above day's high of 11430 can encourage further bull effort to break the 3-week resistance. Failure in this regard would retest the Green line, which break below 11090.

To see full report: CALLS 040509