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WEEKLY
OPTION & DERIVATIVE REPORT

Resistance Faced At Higher Levels !!

22nd February 2010 to 27th Feb 2010
 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

Derivative Wrap
Current Close Weekly Change %Change

Spot Nifty 4844.90 +17 +0.35%

Nifty Futures 4845.95 +8.05 +0.16%

Bank Nifty Futures 8483.20 +18.02 +0.21%

K H ey ighlight
The 30-share BSE Sensex closed at 16,191.63, down 136.21 points or 0.83% and the 50-share NSE
declined 0.88% or 42.85 points to 4,844.90. These indices gained just over 0.2% this week. The broader
indices underperformed the benchmark indices; the BSE Midcap Index was down 1.4% and the Smallcap
was down 1.6%.
The benchmark Sensex closed 136 points lower on the back of sell-off in metal, power, realty, telecom,
cement and select auto stocks and in heavyweights like Reliance Industries, SBI, ICICI Bank and TCS. It was
just a reaction to the Fed's surprise move on Thursday; Federal Reserve increased discount rate by 25 bps to
75 bps post closing of US markets.
European markets were trading flat, at the time of closing of Indian equities. The US index futures were
down 0.5% because Fed announcement came after the markets on Thursday. Asian markets also reacted;
Hang Seng was down 2.6% and Nikkei was down over 2%. Kospi fell 1.7%. Straits Times closed 0.4%
lower. Chinese and Taiwanese markets were shut today.

G lobal Indices
Current Close Weekly Change %Change

Dow Jones 10402.35 +303.21 +3.00%

FTSE 5358.17 +215.72 +4.20%

CAC 3769.54 +170.47 +4.70%

Nikkei 10123.58 +31.39 +0.30%

G lobal M arket N ews

Asian stocks fell for the third week in a month after the U.S. Federal Reserve increased its discount rate
for the first time in more than three years, and as companies reported declining earnings.

U.S. stocks, commodities and the dollar gained as lower-than-estimated rise in inflation fueled
speculation the Federal Reserve will keep its benchmark interest rate near a record low to safeguard
the economic recovery.
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 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

Derivative Wrap

Bank of America Corp. and UBS AG, which eliminated jobs over the past two years as they received
government aid, are luring bankers in London from competitors by as much as doubling base salaries,
recruiters said.

Goldman Sachs Group Inc. dropped a lawsuit and an arbitration proceeding against seven former
executives at its private-wealth management division who left this month to join a unit of rival Credit
Suisse Group AG.

Japan's bonds fell, pushing up 10- year yields from a three-week low, as the yen's decline to the lowest
level in a month boosted the profit outlook for exporters and damped demand for government debt.

Hong Kong police are investigating PCCW Ltd. Chairman Richard Li's failed bid last year to buy the city's
biggest phone company, two people familiar with the matter said.

General Growth Properties Inc. directors were sued by a shareholder claiming they shouldn't have
rejected a $10 billion buyout offer from competitor Simon Property Group Inc.

Oversea-Chinese Banking Corp., the lender that owns Singapore's biggest life insurer, said fourth-
quarter profit rose 67 percent, the most in 11 quarters, on trading and investment gains.

Indian equity and equity-linked offerings may jump by as much as a third this year as companies and the
government tap a growing pool of domestic capital and the economy recovers, according to Citigroup
Inc.

India must cut its 16-year high budget deficit starting next financial year to make monetary policy
effective in damping inflation, the Prime Minister's Economic Advisory Council said.

India's rupee weakened for a second day as prospects the U.S. is moving closer toward raising interest
rates diminished the appeal of higher-yielding regional assets funded with cheap dollar loans.

India's 10-year bonds completed a fourth weekly decline, the longest losing streak since October, on
speculation the government will increase its debt sales from a record in the year starting April 1.

U.K. stocks gained, with the FTSE 100 Index extending its second weekly advance, after an increase in
earnings boosted Shire Plc and Rentokil Initial Plc and U.S. inflation rose less than forecast.

U.K. retail sales dropped more than twice as much as economists forecast in January as the nation's
winter freeze thwarted spending on items from food to furniture.
Source: Bloomberg

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 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

Option Strategy Corner

NIFTY (Lot size/expiry date – 50/ 25 march, 2010)

Outlook : BULLISH

Strategy : LONG CALL

Risk: : Limited to the Premium. (Maximum loss if market expires at or below the option strike price).
Reward: Unlimited

Breakeven: Strike Price + Premium

MAXIMUM STOPLOSS
INDEX PRICE STRIKE PRICE PREMIUM
PROFIT
4844.90 BUY 5000 MAR LONG CALL UNLIMITED 50
CALL OPTION PREMIUM 92

PAY OFF TABLE

ON EXPIRY NIFTY CLOSES AT NET PAY OFF FROM CALL OPTION

4700 -92.00

4800 -92.00

4900 -92.00

5092 00.00

5100 08.00

5200 108.00

5300 208.00

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 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

TECHNICAL PICTURE

Technical View Weekly Levels

NIFTY AGAIN SHOWN BOTH SIDE DIRECTION TODAY BUT DID Properties Values
NOT SUSTAIN HIGHER LEVELS. THE KIND OF CLOSING IT HAD
MADE IS SOME HOW SUGGESTING THAT THE BUYING Support 1 4760
INTERST IS LESS IN NIFTY FUTURE ON HIGHER LEVELS. NIFTY
FACING THE PROFIT BOOKING ALSO NEAR TO THE Support 2 4650
RESISTANCE ZONE. THE CRUCIAL RESISTANCE ZONE IS SEEMS Resistance 1 4950
TO BE AROUND THE LEVEL OF 4990 TO 5000. CLOSING ABOVE
THAT LEVEL COULD INDICATE THE TREND REVERSAL IN NIFTY Resistance 2 5040
FUTURE. THE KEY SUPPORT BASE IS AROUND THE LEVEL 4650
TO 4700.

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 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

Index Futures and Index Options:

Index futures saw a trading volume of Rs.18575.41 crores arising out of 797154 contracts and Index options saw 2118911
contracts getting traded at a notional value of Rs.51785.39 crores. The total turnover of the Futures & Options segment of the
Exchange was around Rs.92723.13 crores.

Instrument wise summary :

Index Future
No of Contracts Traded Quantity Total Traded Value Open Interest (Qty)
Symbol Traded (RS. in CR.) as at End of Trading Hrs

NIFTY 679093 33954650 16424.48 31872000

MINI NIFTY 87256 1745120 844.1 1605660

BANK NIFTY 30599 1529950 1295.06 1243150

CN XIT 206 20600 11.78 33400

Index Option
No of Contracts Traded Quantity Total Traded Value Open Interest (Qty)
Symbol Traded (RS. in CR.) as at End of Trading Hrs

NIFTY 2117449 105872450 51749.55 113753800

MINI NIFTY 814 16280 7.99 39540

BANK NIFTY 648 32400 27.84 195650

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 Weekly Report Derivatives
22nd February to 27th Feb 2010
RESEARCH

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