Equity Derivatives - Research

India
Sector Open Interest
Sector
Automobiles BFSI Capital Good Cement Cons. Durables Energy Fertilizers FMCG Infrastructure Metals & Mining Pharmaceuticals Realty Software Sugar Telecom Utilities

Daily Stock Strategy

Daily Stock Strategy

September 09, 2011

Sectors Snapshot
OI Chg.(%)
-0.02% 2.22% 0.16% -0.39% 0.90% 3.26% 13.29% 3.64% 0.80% 1.07% -0.23% -0.01% 0.80% -0.14% -0.16% 0.71%

OI shares
65805625 273635625 131556875 23742875 123005500 82816000 13310000 116315000 193258000 144969250 24223875 132036000 83280250 50270000 94403000 173361750

The overall market added 1.01% in open interest with an increase in average cost of carry from 0.43% to 1.8%. Fertilizers and FCMG sectors witnessed the highest addition in open interest at 13.29% and 3.64% while the Cement space shed 0.39% in open interest. In the Fertilizers space, Chambal Fertilizers and Tata Chem saw the highest addition in open interest at 26.81% and 4.99% on the back of long accumulation while Uniphos shed 0.08% in open interest. In the FMCG space, KS Oils and Jublfood saw the highest addition in open interest at 11.95% and 6.74% while Godrej Industries shed 3.37% in open interest due to long closure. In the Cement space, Ambuja Cements and Grasim saw marginal addition in open interest at 1.65% and 0.87% on the back of long accumulation while India cements shed 4.54% in open interest due to closure of longs. JP Associates September series OTM put options strikes saw fresh addition of short positions, indicating that the stock is likely to trade with a positive bias in the near term.

Positional Recommendations
VIPIND: VIPIND witnessed fresh addition of long positions in the last session. The stock added 30.5% in open interest with an increase in cost of carry from -32.42% to -16.88%. Long positions can be assumed in the stock on dips at 960-970 for targets of 1000 and 1020 levels with a stop loss placed at 945. ARVIND: ARVIND witnessed fresh addition of long positions in the last session. The stock added 19.44% in open interest with an increase in cost of carry from 1% to 10.19%. Long positions can be assumed in the stock at 84-85 for targets of 88 and 92 levels with a stop loss placed at 82. EXIDEIND: EXIDEIND witnessed fresh addition of short positions in the last session. The stock added 19.24% in open interest with a decrease in cost of carry from 8.51% to 4.26%. Short positions can be assumed in the stock at 142-144 for targets of 138 and 133 levels with a stop loss placed at 147. Reliance 840 PE: Reliance 840-strike September put option saw addition of short positions in the last trading session. It added 2,45,750 shares in open interest with a increase in IV by 2.6 percentage points. Short positions can be assumed in the option at Rs 22-24 with a stop loss at 830(spot) for targets of 6-7. Hindalco 160 PE: Hindalco 160-strike September put option saw addition of long positions in the last session. It added 22,000 shares in open interest with an increase in IV by 0.3 percentage points. Long positions can be assumed in the option at Rs 6-8 with a stop loss at 161(spot) for targets of 12-14.

(Source: Karvy F&O Research)

We Recommend

Futures (Intra-day)
Symbol Reliance ICICI Bank LT Bharti Relcap Action L L L S S Entry 848-850 Above 920 1700-1702 Below 398 428-430 SL 840 912 1690 402 435 Tgt 865 940 1725 390 415

Options (Intra-day)
Symbol Reliance 840 C ICICI Bank 920C Action L L Entry 28-30 29-31 SL 24 25 Tgt 38 40

J.K. Jain jambu@karvy.com 09618087899 Karan Bhalla karan.bhalla@karvy.com 09885178779

Karvy F&O Research is also available on Bloomberg, Reuters and Thomson First Call

CsjoinNifty

Daily Stock Strategy

Most Active Stock Futures

Symbol
RELIANCE SBIN ICICIBANK TATAMOTORS AXISBANK TATASTEEL INFY LT TCS DLF (Source: NSE India)

Expiry Date
29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11 29-Sep-11

Contract Traded
42640 24804 21883 17223 13776 13231 12449 10571 9750 9020

Contract Value
88940.64 62858.92 49387.74 33616.71 39364.92 32534.37 36311.4 44611.21 25402.65 18410.72

LTP
857.05 2030 919.25 787.2 1151.9 490.7 2336.8 1704.3 1034 203.6

OI Shares
12722000 5073500 8412000 6442750 5109500 15975000 2622750 4964500 5134500 19598000

Most Active Calls

Symbol
RELIANCE RELIANCE RELIANCE SBIN RELIANCE UNITECH SBIN TATASTEEL IFCI SBIN
(Source: NSE India)

Most Active Puts

Contract Traded
5380 3760 3300 2249 2239 1965 1906 1788 1727 1599

Strike Price
840 860 820 2050 880 30 2100 500 40 2150

Symbol
RELIANCE RELIANCE RELIANCE RELIANCE SBIN TATASTEEL RELIANCE SBIN DLF JPASSOCIAT
(Source: NSE India)

Strike Price
800 820 840 780 2000 480 760 1900 200 65

Contract Traded
5000 3542 2510 2170 1021 858 787 615 522 510

Top-5 OI Gainers
Symbol
DELTACORP VIPIND OIL CHAMBLFERT

Top-5 OI Losers
OI Chg.(%)
37.22 30.50 27.27 26.81 19.44

CMP
105.25 983.15 1319.15 116.50

OI shares
6606000 753000 38500 7152000

COC (%)
7.43 -16.88 -14.49 -2.24 10.19

Symbol
YESBANK JETAIRWAYS EDUCOMP SOUTHBANK

CMP
296.85 299.40 230.60 22.05

OI shares
4200000 1268500 4139000 2106000

COC (%)
-1.46 3.48 -2.64 0.00 3.19

OI Chg.(%)
-9.15 -8.90 -7.22 -6.77 -6.74

ARVIND 85.25 2384000 (Source: Karvy F&O Research)

AUROPHARMA 136.25 3624000 (Source: Karvy F&O Research)

KARVY EQUITY DERIVATIVES DESK

Shomesh Kumar Head-Equity Derivatives

Disclaimer

shomeshk@karvy.com

9849809008

The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies are required to disclose their individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through 8 Karvy Stock Broking Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities. Karvy F&O Research is also available on Bloomberg, Reuters and Thomson First Call