WEEKLY DERIVATIVES REPORT 211h JULY 2014
NIFTY SNAPSHOT & PIVOT POINTS SPOT
FUTURE
COST OF CARRY
TOTAL FUT OI
PCR OI
PCR VOL
ATM IV
CURRENT
7664
7669
2
16759500
0.87
1.06
14.15
PREVIOUS
7640
7659
6.24
16492000
0.82
0.88
14.04
CHANGE(%)
0.31%
0.14%
-
1.62%
-
-
-
PIVOT LEVELS
S3
S2
S1
PIVOT
R1
R2
R3
NIFTY FUTURE
7442
7546
7608
7650
7712
7754
7858
MARKET ROUNDUP
After violating the support of its 20-DMA last week, index bounced back and regained control above the same. However, as seen in the month of June, 7650-7700 appears to be a difficult zone for the index to surpass. So it will be a big challenge for Nifty to do so this time around also. Fresh upmove is likely once Nifty breaks past 7700 and sustains above the same. Till then, expect index to go through painful consolidation between 74507700.
Nifty staged a smart pull back in initial part of the week. This was partly on account of short covering and heavy cash side buying. In OI side we didn't see much of addition during the week. Suggesting that the recent up move could be restricted. PUT OI has been on surge during the week taking the PCR OI ratio back to higher seventy
F&O HIGHLIGHTS Post a negative start, the index took very good support near 7600 levels. From there it witnessed good momentum. Banking, metals & few other heavyweights supported the market and it ended after adding 17 points. The premium declined and settled at 5 points. India VIX increased 0.85% and settled at 15.09
FIIs bought 574 crore while DIIs sold 283 crore in the cash segment. FIIs sold 375 crore in index futures and bought 481 crore in index options. In stock futures, they bought 318 crore
The highest Put base stands at the 7500 strike with over 69 lakh shares. The highest Call base stands at the 8000 strike with over 82 lakh shares. The 7600 and 7700 Call strikes have seen reduction of 2.10 and 1.03 lakh shares, respectively. On the Put side, 7700, 7600 and 7500 strikes have seen addition of 5.70, 7.33 and 1.43 shares, respectively
INDEX OUTLOOK Nifty Future: The Nifty is likely to open gap up on the back of strong global cues. It is likely to trade in the range of 7640-7740. The trading strategy would be to create shorts near 7720-7725 for targets of 7690 and 7670. On the other hand, one can enter longs if the index finds support near 7640 Bank Nifty Future: Any sustainable move above 15500 levels would take the index towards 15700-15800. Supports can be seen near 15250 YOUR MINTVISORY
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