NIFTY & PCR Graph. Indices Change. Monthly Losers. Monthly Gainers. Derivatives Rollover Report October 27, 2017

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1 Derivatives Report October 27, 2017 October series was indeed a Diwali bonanza for our markets as the benchmark index registered a fresh record high and achieved yet another milestone of Finally, post consolidation seen in last two series index gained momentum and we also witnessed decent amount of long formation in index futures segment. Now, Nifty s is at 72.69% which is above its 3 month average of 65% and in terms of open interest as well it s on the higher side. Historically, there has been a trend whenever FIIs start selling in equities, markets tends to take it negatively; but, this time, history is not getting replicated. In fact, this entire selling has been completely overshadowed by the enormous and relentless buying from domestic institutions (DIIs). However, FIIs did participate in the recent rally by forming good amount of longs in index and stock futures. In addition, they also rolled majority of these positions; resulting their Index Futures Long Short Ratio surging back to 70%. At current juncture, call option is attracting traders attention; while, maximum concentration of open interest in puts is placed at followed by strike. Considering above data, we expect continuation of ongoing momentum in November series. BANKNIFTTY (68.63%) rollover in terms of percentage is on the higher side; but, open interest has dropped series on series. Post huge short rollovers in October series, we witnessed a healthy rally in PSU banks on the back of recapitalization plan announced by government. Now, BankNifty as well as majority of the PSU bank are light in terms of open interest. Hence, traders are advised to wait for fresh build-up before initiating any aggressive positions. Indices NIFTY & PCR Graph INDEX 3 month avg. NIFTY BANKNIFTY NIFTYIT NIFTYMID NIFTYINFRA Monthly Gainers Open Interest Ol PNB UNIONBANK (17.84) SAIL (5.81) BANKINDIA (15.44) CANBK (37.08) Note: Stocks which have more than 1000 contract in Futures OI. Monthly Losers Open Interest Ol RCOM (21.04) STAR (5.59) RELCAPITAL (5.46) YESBANK (5.42) AXISBANK (5.40) Note: Stocks which have more than 1000 contract in Futures OI. 1

2 Derivatives Report Banking and Financials HDFCBANK (84.34%) closed on a flat note last series; but, added good amount of long position. At the same time, rollover is above its averages. Thus, any bounce back above immediate hurdle of Rs levels shall be an opportunity to buy. ICICIBANK (82.81%) rallied 8% series on series which was mainly due to short covering. Though, rollovers are above average; OI remains light. At present, Rs is an immediate support; one shall look for fresh longs at current levels. FEDERALBNK (83.79%) started October series on a light note; however, we saw meaningful long formation last series. Open interest is up 36% series on series, indicating longs formed in last series are still intact. At present, this counter is hovering around the support zone of Rs ; traders are advised to add fresh longs. Auto & Auto Ancillaries Last series, APOLLOTYRES (75.10%) traded in a very narrow range but added huge positions. Open interest surged 46% series on series, we believe majority of the positions formed are on short side. At present, this stock is taking strong support around Rs levels. Traders are suggested to go long, once stock surpasses Rs CASTROLIND (95.22%) has highest rollover in this space. This counter added huge longs due to which open interest jumped up to 52.42% series on series. Thus, we believe this counter may continue its momentum going ahead; buy on dips. TATAMOTORS (87.18%) rallied 4.65% MoM with good amount of long positions. s are also above averages, indicating we may see some strength going forward. Oil & Gas GAIL (67.50%) rallied 16% last series with good amount of long formation. figure in percentage terms is on the lower side but open-interest wise its inline. Thus, any dip towards Rs shall be an opportunity to buy. BPCL (65.49%) has lowest rollovers in this space. Post some correction in September series, this counter resumed its major trend and was up 15% last series. However, this move was mainly due to short covering. Thus, traders are suggested to exit from long if any. Similar to BPCL, HINDPETRO (84.46%) rallied 15% in October series due to short covering. At present, open interest is lowest in last two series. Those, traders with longs shall look to exit and one who wishes to take new positions shall wait for fresh build-up. 2

3 Derivatives Report Metal & Mining HINDALCO (84.56%) extended its gains last series and registered a fresh record high. We witnessed huge long formation and rollover figure suggests these positions have been rolled too. Thus, this counter remains buy on dips for us. JSWSTEEL (94.32%) has highest rollovers in this space. This counter traded in a narrow range for major part of October series. We saw some longs and good amount of short covering. Now, this counter has strong support at Rs levels. We expect fresh buying coming in soon. Thus, traders are advised to go long and fix stop loss of Rs. 255/- Other stocks wherein we saw long rollovers are NATIONALUM (90.96%), HINDZINC (82.62%) and NMDC (84.09%). Pharmaceutical AUROPHARMA (93.09%) rallied 11% MoM; but, this move was mainly due to short covering. However, the momentum is very strong in this counter. Thus, traders are advised to hold on to their existing longs. DRREDDY (90.74%) traded in a narrow range for the entire October series. However, we believe majority of the shorts formed in July and August series have been lightened; this is a positive sign for bulls. Thus, we expect fresh buying attracting in this counter. SUNPAHRMA (93.74%) rallied nearly 7% and also added fresh longs. As rollovers are on the higher side, we believe majority of these long positions have been rolled over. Traders are advised to hold on to their longs. Consumer Goods & FMCG Last series, ITC (80.07%) consolidated in a range and formed mixed positions. However, the earlier shorts are still in the system. Any positive trigger could lead to some short covering and the prices could bounce upto its resistance around Rs. 284/-. UBL (91.90%) formed significant long positions which have been rolled over to the November series. Traders with long positions are advised to continue holding their positions for a probable target of around Rs Rally in JUBLFOOD (81.50%) was supported by short covering as well as fresh long build-up. The long positions seem to have been rolled and hence, the stock could continue its uptrend. Traders should adopt buy on dips strategy for this counter 3

4 Derivatives Report OI Futures OI COC PCR-OI Average (3month) AUTO & AUTO ANCILLARIES AMARAJABAT (2.48) APOLLOTYRE (1.31) ASHOKLEY (0.10) BAJAJ-AUTO BALKRISIND (4.11) BHARATFORG (17.65) BOSCHLTD (1.10) CASTROLIND CEATLTD (0.93) EICHERMOT ESCORTS (38.30) EXIDEIND HEROMOTOCO (4.85) M&M (19.52) MARUTI MOTHERSUMI MRF (10.70) TATAMOTORS TATAMTRDVR TVSMOTOR BANKING & FINANCIALS ALBK ANDHRABANK (2.29) AXISBANK (5.40) BAJAJFINSV (1.21) BAJFINANCE (4.69) BANKBARODA (37.41) BANKINDIA (15.44) BHARATFIN CANBK (37.08) CANFINHOME (5.19) CAPF (0.73) (6.75) CHOLAFIN (11.87) DCBBANK (0.61) DHFL EQUITAS (4.05) FEDERALBNK HDFC (2.74) HDFCBANK

5 Derivatives Report OI Futures OI COC PCR-OI Average (3month) IBULHSGFIN ICICIBANK (7.61) ICICIPRULI IDBI (34.53) IDFC (10.46) IDFCBANK IFCI INDIANB (7.47) INDUSINDBK (3.38) KOTAKBANK (6.13) KTKBANK L&TFH LICHSGFIN (0.75) M&MFIN MANAPPURAM (9.03) MFSL (1.95) (6.73) MUTHOOTFIN (21.54) ORIENTBANK PFC PNB RBLBANK RECLTD (7.56) RELCAPITAL (5.46) REPCOHOME (10.95) SBIN (31.00) SOUTHBANK SREINFRA SRTRANSFIN (7.44) SYNDIBANK UJJIVAN UNIONBANK (17.84) YESBANK (5.42) CAPITAL GOODS & INFRASTRUCTURE ADANIPORTS BEML (3.83) BHEL (5.95) CGPOWER ENGINERSIN GMRINFRA (0.31) HAVELLS HCC (2.33) IRB (2.21)

6 Derivatives Report OI Futures OI COC PCR-OI Average (3month) JPASSOCIAT (0.37) LT NBCC RELINFRA SIEMENS VOLTAS (3.76) CEMENT ACC (30.79) AMBUJACEM (12.84) DALMIABHA (7.44) GRASIM (5.29) INDIACEM RAMCOCEM SHREECEM ULTRACEMCO CHEMICALS & FERTILIZERS PIDILITIND TATACHEM UPL CONSUMER GOODS & FMCG ASIANPAINT (1.22) BERGEPAINT (41.14) BRITANNIA COLPAL (1.32) (0.14) DABUR (9.93) GODFRYPHLP GODREJCP HINDUNILVR ITC JUBLFOOD MARICO MCDOWELL-N NESTLEIND TATAGLOBAL TITAN UBL

7 Derivatives Report OI Futures OI COC PCR-OI Average (3month) METALS & MINING COALINDIA (26.95) HINDALCO HINDZINC JINDALSTEL (9.47) JSWSTEEL (4.43) NATIONALUM NMDC SAIL (5.81) TATASTEEL VEDL (14.60) INFORMATION TECHNOLOGY HCLTECH (0.19) HEXAWARE INFY (7.96) KPIT MINDTREE (4.63) NIITTECH (8.46) OFSS (1.74) (6.81) TATAELXSI TCS (0.95) TECHM (1.80) WIPRO MISCELLANIOUS ADANIENT APOLLOHOSP BALRAMCHIN BATAINDIA (20.54) BEL CONCOR (2.49) CUMMINSIND GODREJIND (0.60) INDIGO (12.42) INFIBEAM JETAIRWAYS JISLJALEQS JUSTDIAL KAJARIACER (1.38) KSCL

8 Derivatives Report OI Futures OI COC PCR-OI Average (3month) MCX PCJEWELLER RNAVAL VGUARD (18.45) OIL & GAS BPCL (30.56) CHENNPETRO (34.66) GAIL HINDPETRO (15.38) IGL (0.92) IOC (17.45) MGL (7.35) MRPL OIL ONGC (5.28) PETRONET (22.89) RELIANCE PHARMACEUTICAL AJANTPHARM AUROPHARMA (7.15) BIOCON CADILAHC (15.25) CIPLA DIVISLAB (35.16) DRREDDY (0.71) (1.42) FORTIS GLENMARK GRANULES LUPIN (0.67) PEL STAR (5.59) SUNPHARMA TORNTPHARM WOCKPHARMA REAL ESTATE DLF HDIL (0.56) IBREALEST NCC (10.19)

9 Derivatives Report POWER ADANIPOWER CESC (0.82) JSWENERGY NHPC NTPC POWERGRID PTC (2.16) RPOWER (2.30) SUZLON (0.26) TATAPOWER (11.85) TORNTPOWER (23.34) TELECOM BHARTIARTL IDEA INFRATEL RCOM (21.04) TATACOMM TEXTILES ARVIND (20.64) CENTURYTEX ICIL (5.31) PAGEIND (7.59) RAYMOND SRF MEDIA DISHTV PVR (31.40) SUNTV (4.90) TV18BRDCST ZEEL

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