Derivatives Daily - December 27, 2012 - Nirmal Bang

- Indian markets rallied around 1% yesterday on account of short covering ahead of December series expiry today. Positive global cues too helped markets. Improved optimism regarding Fiscal cliff & Bank of Japan monetary policy hint towards further easing boosted global sentiments.

- Overseas, DOW closed in red at 13,115 (down 24 pts). The European markets were closed on Wednesday.

- FIIs were net buyers in cash as well as in Index Futures to the tune of 743.8 Cr and 163 Cr respectively.

- India VIX decreased by 2.69% to close at 14.10, touching an intra-day high of 14.98.

- Highest addition in put OI at 5900 level suggest markets participants expectation of Dec series expiry above 5900 level. This is also supported by winding up of call OI build up from 5800 & 5900 level.

- Highest OI build-up is seen at 6000 Call and 5800 strike Put, to the tune of 15.36 mn and 13.21 mn respectively.

- Nifty has a strong support at 5,870-5,840 levels on the downside. If Index manages to sustain above these levels for couple of trading sessions one can expect short term bounce to 5,930-5,950 levels which faces crucial resistance on the upside, expect selling pressure to continue at higher levels.

Source : Equity Bulls

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