Weekly market derivative report by epic research from 21 july to 25 july 2014

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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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Weekly market derivative report by epic research from 21 july to 25 july 2014 by epicresearch - Issuu