Derivatives Call

Nifty (May) futures’ premium decreased to 3.1 from 4.35 and shed around 33 lakh shares in open interest while Nifty (June) futures added around 46 lakh shares in open interest.

The total open interest in the market was 69,684 crore and added around 2284 crore in open interest.

Nifty calls added 14,550 shares and puts added 14.34 lakh shares in open interest.

Crompton Greaves (64%), Nagarjuna Construction (41%), GE Ship (35%), VSNL (17%) and IFCI (14%) were the top interest gainers in the market.

Unitech (-23%) and M&M Ship (-11%) were the top open interest losers in the market.

TTML (93%), IDBI (92%), JP Hydro (91%), IFCI (90%), Jindal Stainless (89%), Parsvnath (89%), Arvind Mill (86%) and SRF (86%) are very close to their market wide position limits.

The market opened on a strong note and witnessed some weakness in the morning trades. It recovered from the low of 4250 to give an all-time high closing just below the 4300 mark at 4293.25, with a gain of around 1%. Buying was seen in very selective stocks, mainly the heavyweight counters. Volumes in Nifty futures were higher than the average and added around 12.4 lakh shares in open interest with an increase in the cost of carry, indicating short selling. On the option front, we have seen implied volatility of options has increased and a lot of activity was seen in 4200 June strike price, indicating strong support area around that level. The market is likely to open on a flat to positive note and global cues will play a crucial role in giving market a direction from these levels. Key support levels for the Nifty are 4230 and 4270 whereas
resistance will be around 4320.