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C. Raja Rajeshwari

THE week saw a lot of activity with the panic Monday, hectic Tuesday, expiry of August contracts on Thursday and new entrants on Friday. Put volumes have increased, especially in stock options. With the entrance of CNX IT and other bank stocks, volumes are destined to go up.

Most of the positions are rolled over prior to expiry. However, the bomb blasts on Monday has caused many positions to be closed.

Post expiry, open interest except for the much after counters such as SBI, Satyam Computers, Tata Motors, Tata Steel and Reliance.

Most of the futures are quoting at a premium to spot. Hence for the week ahead, there is much uptrend in the market.

Nifty: The Nifty has had erratic movements moving the week up by 45.44 points to 1356.55 points.

With volatility increasing, the premiums also have increased. The September contracts put-call ratio closed at 0.59, indicating no clear signals of the movements for the coming week.

# The IV for September 1360 call has jumped to 21.84 per cent, with open interest at 756 contracts.

# On the other hand, the IV of September 1300 puts has stabilised at 23 per cent. Open interest stood at 680 contracts.

CNX IT: With the introduction of contracts on CNX IT, the circuit filters have been removed for the stocks that had no exposure in the derivatives segment. In one trading day, the CNX IT September contracts gained 607 contracts. The order book is heavily weighed towards short positions. The options had very few trades.

Reliance: The stock has gained Rs 19 t o Rs 400.7. IV for both calls and puts has reduced.

The put-call open interest ratio is at 0.4. Reliance September futures are quoting at a huge premium to spot. For the week ahead, there is uptrend in the stock. Long futures and long calls at current levels can be contemplated.

SBI: The banking stocks rally during mid-week pushed the stock higher by Rs 6.35 to Rs 440.7.

The IV for SBI calls has increased to 41.60. The September futures quote at a premium to spot.

The put-call open interest ratio stood at 0.15. Much of the trading activity is concentrated on the 400-strike, 390-strike and 420-strike calls.

The IV for the September 410 call has jumped from 35 per cent of previous week to 56 per cent.

Tata Motors: The stock has gained Rs 17.25 on a weekly basis to Rs 280.

The put-call ratio has closed the week at 0.27. The trading interest is, however, concentrated in the 290 calls. These calls have closed the week at Rs 12.10. These contracts are relatively cheaper on implied volatility.

Tata Steel: The stock had a rather volatile week. The IV of the puts has jumped from 49.4 per cent to 57.2 per cent. The call's IV, which jumped to high of 65 per cent, has reduced to 57.84 with the stock appreciating.

The IV for the in-the-money calls has jumped. The put-call ratio closed at 0.20, indicating further upside in the stock. The stock ha closed at the same level as last week.

New counters: trading interest has just picked up in the stocks, hence futures were the most active.

Trading interest is evinced mainly in calls.

The table shows the open interest accumulated in one trading session. Contracts of Bank of India, Andhra Bank and Canara Bank were the much sought after.

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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