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C. Raja Rajeshwari

Open interest of stocks such as Tata Steel, Mastek, Shipping Corporation stood at more than 90 per cent of the market wide position limits. The July contracts have four trading day before expiry.

THE derivatives segment on the NSE witnessed huge volumes with turnover of Rs 5,848.11 crore on Friday. Open interest of stocks such as Tata Steel, Mastek, Shipping Corporation stood at more than 90 per cent of the market wide position limits. Market-wide position limits specify the number of positions that can be taken in the underlying stock and is specified by National Securities Clearing Corporation.

The implied volatility (IV) for Nifty options remained unchanged on a week-on-week basis. The IV of tech underlying's has decreased as compared with levels of previous week, but still gives cause for concern with high numbers.

Index contracts: . The July contracts closed the week at an Rs 1.10 premium to the spot. # With the uncertainty in the Nifty, which ranged from the 1105-1165 level, the July 1150 call was the most active contract.

# The put-call ratio for the Nifty July contracts stood at 0.87 as compared with last week's 0.74.

# This increase in the put-call open interest ratio for two consecutive weeks indicates that the index is poised to move higher in the coming week.

# The August futures gained 61 per cent in open interest at 3098 contracts.

# However, it is to be seen in the coming week whether this relative increase in the put volume with that of call volumes is also maintained, pushing the put-call ratio higher.

Tech counters: The results announcement caused wild movements in the tech stocks in the past two weeks. With this, the tech counters were sizzling in the F&O segment. The IV of Mastek, which jumped two-fold, has decreased with the stock steadily increasing, post results.

Infosys: With the stock jumping 4 per cent over the week, the contracts of this stock were ever so active. The open interest across the three-month contracts jumped two-fold. Open interest in the August futures has jumped two-fold. Put-call ratio stood at 0.68. To capture on the uptrend in this stock, at-the-money calls can be purchased, with a trade-off between premium paid and future inflows. .

Other counters: Active counters were Tata Motors, M&M and Reliance. Open interest stood at 93 per cent of the market-wide limit for Maruti.

Shipping Corporation: The IV of SCI calls has zoomed up to 70 per cent on a single day. Historically the IV has touched 90 levels, only to return to its mean level of 50 per cent. In addition the put-call ratio is 0.20. Taking into consideration this development, short straddles in the August contracts can be taken to cash in on the high premium.

SBI: The stock gained 3 per cent to end the week at Rs 425.15. The open interest in the July contracts decreased by 6 per cent but August futures gained 4 per cent in open interest. The put-call ratio has zoomed up to close the week at 0.85, thus indicating positive outlook for the stock.

Tata Motors: Traders closed some positions before the announcement and immediately after the announcement of results. However, the open interest has improved marginally in the fag end of the week. Open interest was high in July 220-strike, 230-strike and 210 calls. Put-call ratio ended the week at 0.81, which is bearish sentiment in the market. This ratio has reduced over the week. The ratio was 0.92 for last week.

M&M: The stock traded in a narrow range in the week. In the cash segment, volumes were erratic with increase and decrease alternating. The open interest is at 82 per cent of the market wide limit. The open interest in the July futures has decreased. The put-call ratio closed the week at 0.51, which signifies market indecisiveness.

If you have any queries relating to the futures/options please mail them to Futures & Options, Kasturi & sons, 859-860, Anna Salai, Chennai 600 002 or email them to

fno@thehindu.co.in

with a mention of futures/options in the subject line of the mail.

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