GLOBAL RESEARCH LIMITED

DERIVATIVES
W E E K L Y

07th Feb - 11th Feb 2010

“Shorting Continues -
Nifty drags below the 5400 Mark”

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 GLOBAL RESEARCH LIMITED

DERIVATIVES
N I F T Y

Last week the Nifty Index tumbled 2.11% and ended below its 5400 mark at 5395.75. On the
derivatives front we have seen that the Nifty Futures prices plunged along with an overall
addition of open interest and decline in the cost of carry, this is an indication that shorts were
built at higher levels. For the coming week, Support for the Nifty Index is seen at
5330/5250/5180 range whereas on the upside 5560/5630 would continue to act as resistance
on the upside.

Sentiment Indicator Nifty

W

Particulars 4th Feb. 2011 28th Jan. 2011 %Change

E

Spot Nifty 5395.75 5512.15 -2.11

E

Nifty Futures (Feb) 5387.00 5536.55 -2.70

Nifty CoC (%) -2.96 +5.98 -149.50

K

Open Interest 26836700 21309250 +25.93

L

Volume 691687 558092 +23.93

Y

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DERIVATIVES
B A N K N I F T Y

The Bank Nifty Index last week tumbled 1.36% and ended at 10433.85 mark. On the derivatives
front we have seen that the Bank Nifty Futures prices declined along with an overall addition of
open interest and decline in the cost of carry, this is an indication of shorts being built at higher
levels. For the coming week, immediate support for Bank Nifty is seen at 10373 , if it continues to
sustain below this mark decisively selling pressure may continue and in that case the next major
support is seen at 9920/9575 levels whereas on the upside major resistance for Bank Nifty is seen
at 11125 levels.

Sentiment Indicator Nifty

W

Particulars 4th Feb. 2011 28th Jan. 2011 %Change

E

Spot Bank Nifty 10433.85 10578.25 -1.36

E

Bank Nifty Futures (Feb) 10422.80 10635.95 -2.00

Bank Nifty CoC (%) -1.93 +7.37 -126.18

K

Open Interest 1215900 1102700 +10.26

L

Volume 91293 78119 +16.86

Y

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DERIVATIVES
C N X I T

The CNX IT Index last week ended below its 7000 mark losing 3.03% at 6850.65 mark. On the
derivatives front we have seen that the CNX IT Futures prices slipped along with shredding of
open interest and decline in the cost of carry; this is an indication of unwinding by the longs. For
the coming week, CNX IT Index has breached its supports around 7053 levels, immediate
support for the Index is seen at 6824 levels, if it continues to sustain decisively below this level,
selling pressure may continue to exist and in that case the next major support is seen at 6474
levels whereas on the upside resistance continues to exist at 7053/7220 levels.

Sentiment Indicator CNX IT

W

Particulars 4th Feb. 2011 28th Jan. 2011 %Change

E

Spot CNX IT 6850.65 7065.35 -3.03

E

CNX IT Futures (Dec) 6859.75 7113.40 -3.56

CNX IT CoC (%) +2.42 +9.19 -73.66

K

Open Interest 14500 19000 -23.68

L

Volume 337 384 -12.23

Y

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DERIVATIVES
O P T I O N S N A P

From the OI Concentration (Feb. Series) we can see that the addition of maximum open interest
on the call options front is existent at strike price of 5500-5700 indicating this range to act as
immediate resistance on the upside whereas on the put options front maximum open interest is
seen at strike price of 5400 and we have seen some shredding of open interest on last trading
session indicating some caution from the put writers as Nifty has closed below this level. Going
ahead if we continue to sustain below the 5400 mark, the next support from the puts front is
seen at strike price of 5200.

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