Derivative Tips for the Week

8/14/2019 Derivative Tips for the Week

1/7

www.capitalvia.com

Short Covering Helps Market To End Higher !!15th February 2010 to 20th Feb 2010

WEEKLYOPTION & DERIVATIVE REPORT


2/7

R E S E A R C H

www.capitalvia.com | 2

Global Indices

Weekly Report Derivatives15th February to 20th Feb 2010

Derivative Wrap

Key HighlightThe 30-share BSE Sensex closed at 16,152.59, up 230.42 points or 1.45% and the 50-share NSE Nifty rose

69.65 points or 1.46% to 4826.85. Indices gained 1.4% this week. The benchmark indices outperformed

the broader indices; the BSE Midcap and Smallcap indices gained 0.8% each.

The benchmark Nifty saw a huge buying interest today on the back of positive global cues and short

covering. It closed above the 4800 mark for the first time in the last six sessions. Buying across all the sectors

helped the Sensex to close with more than 200 points rally.

Global cues remained positive today on hopes of likely bailout plan for Greece. Among the Asian markets,

Hang Seng and Kospi went up 1.8% each. Straits Times was up 0.7% and Jakarta was up 1%. Shanghai

was up just 0.1%. Taiwanese and Japanese were shut today.

China's central bank took the second step in a month to restrain inflation and damp asset prices,

ordering lenders on the eve of a weeklong holiday to set aside larger reserves.

Asian stocks rose for the first week in four, led by commodity companies and banks, as optimism for

the global economy overcame concern about Greek finances.

GlobalMarketNews

Spot Nifty

Nifty Futures

Bank Nifty Futures

Current Close

4828.25

4826.85

Weekly Change

+105.01

+71.5

2.2%

1.50%

%Change

8400.10 +150.01 1.82%

Dow Jones

FTSE

Current Close

10067.33

Weekly Change

-53.13 -0.52%

%Change

5188.50 +42.78 +0.83%

CAC 4012.91 -106 0.03%

Nikkei 10198.04 -216.25 -2.08%


3/7

R E S E A R C H

U.S. stocks, commodities and the euro fell as China unexpectedly boosted bank reserve requirements

and data showed Europe's economic recovery almost stalled. Equities trimmed declines as the dollar

retreated from its strongest level of the day, reducing losses in commodities.

Japan's 10-year bonds completed a weekly gain on speculation chronic deflation will encourage the

Bank of Japan to keep its benchmark interest rate near zero when policy makers meet next week.Japan's 10-year bonds completed a weekly gain on speculation chronic deflation will encourage the

Bank of Japan to keep its benchmark interest rate near zero when policy makers meet next week.

Japan's economy probably grew at the fastest pace since the first quarter of 2008 as a global trade

revival fueled demand for the nation's exports.

Harvard University, the richest U.S. university, reported the value of its U.S. securities increased 26

percent in the fourth quarter, as it bought exchange-traded funds that track markets outside the U.S.

Matthew Rose, chief executive officer of railroad Burlington Northern Santa Fe Corp., welcomed

Warren Buffett as his company's new owner while showing analysts and hedge-fund managers the

door.

Goldman Sachs Group Inc. investment management co-head Marc Spilker is leaving the firm after two

decades and will be replaced by a predecessor.

President Barack Obama will announce next week that Southern Co. will get a federal loan guarantee

to build two nuclear reactors in Georgia, the first support awarded under a five-year-old law, an

administration official said.

U.K. stocks fell, led by financial and mining shares, after China, the world's fastest growing major

economy, and ordered banks to set aside more deposits as reserves for the second time in a month.

U.K. banks approved the most mortgages for first-time buyers in two years in December as people

rushed to buy homes before a tax break ended, the Council of Mortgage Lenders said.

Derivative Wrap


Source: Bloomberg



4/7

R E S E A R C H


Option Strategy Corner


INDEX PRICE

4826.85 LONG CALLPREMIUM 107

NIFTY (Lot Size / Expiry Date - 50 / February 25, 2010)

Outlook : BULLISH

STRIKE PRICE PREMIUMMAXIMUM

PROFITSTOPLOSS

BUY 4800 FEBCALL

UNLIMITED 60

PAY OFF TABLE

ON EXPIRY NIFTY CLOSES AT

4600

4700

4800

4900

5000

5100

5200

Strategy : LONG CALL

Risk: Limited to the premium. (Maximum loss if market expires at or below the option strike price).

Reward: Unlimited

Breakeven: Strike Price + Premium

NET PAY OFF FROM CALL OPTION

-107.00

-107.00

00.00

-7.00

93.00

193.00

293.00


5/7

R E S E A R C H


NIFTY MADE CLOSING ABOVE THE LEVEL OF 4805 TODAY. IT

AGAIN WAS HIGHLY VOLATILE DAY IN MARKET. NOW WECOULD SEE THE INTRA DAY RESISTANCE FOR NIFTY AT 4875, IF

IT BREAK THIS LEVEL & SUSTAIN ABOVE IT ONE COULD SEE THE

LEVEL OF 4950 IN NIFTY FUTURE.TECHNICALLY WE COULD

EXPECT THE TREND REVERSAL IN NIFTY, WHEN IT CLOSEABOVE THE LEVEL OF 4950.IF NIFTY CLOSE ABOVE THE 4950,

ONE SHOULD WITHDRAW THEIR SHORT POSITIONS & SHOULD

FOCUS ON LONG SIDE.THE MAJOR SUPPORT BASE FOR NIFTY

SEEMS TO BE AROUND THE RANGE OF 4650 TO 4700.

TECHNICAL PICTURE

Technical View


Properties

Support 1 4650

4520

4875

5000

Values

Support 2

Resistance 1

Resistance 2

Weekly Levels


6/7

R E S E A R C H


Index Futures and Index Options:

Index futures saw a trading volume of Rs.15478.15 crores arising out of 668927 contracts and Index options saw 1793409contracts getting traded at a notional value of Rs.43635.23 crores. The total turnover of the Futures & Options segment of the

Exchange was around Rs.73749.79 crores.

Instrument wise summary :

Index Future

Symbol

NIFTY

MINI NIFTY

BANK NIFTY

No of ContractsTraded

80491

560278

Traded Quantity

1609820

28013900

776.14

13514.06

Total Traded Value(RS. in CR.)

Open Interest (Qty)as at End of Trading Hrs

1553440

31822150

CN XIT

27922 1396100 1174.46 1217050

228 22800 12.87 48700


Symbol

NIFTY

MINI NIFTY

BANK NIFTY

No of ContractsTraded

658

372

1792379

Traded Quantity

13160

18600

89618950

6.42

15.95

43612.86

Total Traded Value(RS. in CR.)

Open Interest (Qty)as at End of Trading Hrs

32960

140200

108029450

Index Option


7/7

Derivative Tips for the Week

Documents