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Daring Derivatives : Bears continue to strike

Nifty (August) futures’ premium over spot Nifty has increased to 19.60 points from 9.95 points. Total open interest in the market was Rs114,679 crore and Rs5,236 crore were added in open interest. Nifty call options added 32.32 lakh shares in open interest, whereas put options added 29.76 lakh shares in open interest. Indian Hotels (41%), IVRCL Infra (21%), Larsen & Toubro (18%), Moser Baer  (15%) and Bank of Baroda (11%)were the top open interest gainers in the market. Indian Bank (-13%), SAIL (-5%), Balrampur Chini (-5%) and Sesa Goa (-4%) were the top open interest losers in the market. Overall volumes in futures & options currently stand at 38.05 lakh contracts with a turnover of Rs104,008 crore whereas volumes in Nifty futures were marginally higher compared to previous trading volumes.

Bears continue to strike:

The Nifty opened gap-down drawing negative cues from the global markets. Concerns of a slowing global economy triggered a sell off  in frontline stocks such as Larsen & Toubro, Tata Motors, Axis Bank, Bajaj-Auto, DLF, Ranbaxy Laboratories, Power Grid Corporation of India, Mahindra & Mahindra and ICICI Bank. However gains in Steel Authority of India Ltd (SAIL), Reliance Infrastructure, Sesa Goa, BPCL, Tata Power, ITC, Ambuja Cement, Hindalco Industries, Cairn India and Jaiprakash Associates pared off some of the market’s losses and helped the Nifty in recovering from the day's lows. The Nifty finally closed 52 points lower at 5405, which is above the key support of 5400.

Around 21.19 lakh shares were added in open interest with an increase in the cost of carry indicating accumulation of long positions at 5400 levels. On the options front implied volatility increased marginally indicating uncertainty will continue to persist in the market.