www.capitalvia.

com

RESEARCH

WEEKLY
DERIVATIVES REPORT
Selling Pressure Led Nifty To End Below 5K

24th May 2010 to 29th May 2010

www.capitalvia.com
 Weekly Report Derivatives
Weekly
24th May to Commodity
29th May 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Derivative Wrap - Nifty

Sentiment Indicator Nifty:

Particulars 21st May 2010 14th May 2010 %Change

Spot Nifty 4931.15 5093.50 -3.18

Nifty Futures May 4928.40 5083.65 -3.05

Nifty CoC (%) -3.39 -5.42 +37.45

Open Interest 36845550 30670550 +20.13

Volume 783753 581569 +34.76

Nifty Snap
Last week the Nifty index plunged more than 3% and ended at 4931.15. The Nifty futures ended at discount of
2.75 points vs. 9.85 points last week. If we gauge at the derivatives desk we can see that on weekly basis the
cost of carry has turned positive along with an overall addition of open interest , this is an indication of long built
up at lower levels. For the coming week if Nifty continues to manage above its 4850 levels then the pull back in
it may continue. Immediate Resistance for Nifty is seen at 4965 mark, above which the rally may continue up to
5030/5065 levels. The levels of 5115 would act as stiff resistance on the upside. On the downside, strong
support is seen in the range of 4850-4780, if this range is broken then only we will witness fresh round of selling
in which case the next support is at 4675 Mark.

www.capitalvia.com | 2
 Weekly Report Derivatives
Weekly
24th May to Commodity
29th May 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Derivative Wrap - Bank Nifty

Sentiment Indicator Bank Nifty:

Particulars 21st May 2010 14th May 2010 %Change
Spot Bank Nifty 9135.70 9589.05 -4.72

Bank Nifty Futures May 9146.90 9573.80 -4.45

BankNifty CoC (%) +1.22 -4.46 +127.13

Open Interest 1168450 1187600 -1.61

Volume 73165 67233 +8.82

Bank Nifty Snap

Last week the Bank Nifty Index plunged in line with the main indices. It dragged lower towards its 8969 mark
and rebounded to give a close at 9135 mark with weekly loss of -4.70%. On the derivatives front we can see
that the cost of carry has turned positive along with shredding of open interest and the prices being in the
negative territory, this is an indication of long closure at higher levels in it. For the coming week immediate
Resistance for the Bank Nifty Index is seen at 9230/9336 mark whereas major Resistance is seen at 9500 levels.
On the downside Support is seen at 8969/8780 levels.

www.capitalvia.com | 3
 Weekly Report Derivatives
Weekly
24th May to Commodity
29th May 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Derivative Wrap - CNX IT

Sentiment Indicator CNX IT:

Particulars 21st May 2010 14th May 2010 %Change

Spot CNX IT 5606.45 5839.75 -3.99

CNX IT Futures May 5586.95 5838.20 -4.30

CNX IT CoC (%) -21.15 -0.74 -2758.10

Open Interest 21000 24800 -15.32

Volume 189 514 -63.22

CNX IT Snap
The CNX IT index last week plunged nearly -4.00 % and ended at 5606 Mark. On the derivatives front we can
see that the CNX IT futures prices dragged lower along with decline in the cost of carry and shredding of open
interest , this is an indication of unwinding by the longs in it. For the coming week CNX IT Index Support is seen
at 5400/5215 levels whereas on the upside Resistance is seen at 5730/5845 Mark.

www.capitalvia.com | 4
 Weekly Report Derivatives
Weekly
24th May to Commodity
29th May 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Options Snap

From the OI Concentration Chart (June Series) we can see that maximum addition of open interest on call
options continues to exist at 5200strike indicating it as a strong hurdle on the upside whereas on the put
options front we can see maximum addition of open interest at strike price of 4800 indicating it as a good
support on downside.

www.capitalvia.com | 5
 Weekly Report Derivatives
Weekly
24th May to Commodity
29th May 2010 Report
1st March to 6th Mar 2010
RESEARCH
RESEARCH

Disclaimer

The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not
accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them
the most.

Investment in Stocks has its own risks. Sincere efforts have been made to present the right investment perspective. The
information contained herein is based on analysis and up on sources that we consider reliable. We, however, do not vouch for
the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss
incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the
recommendations above.

The stock price projections shown are not necessarily indicative of future price performance. The information herein, together
with all estimates and forecasts, can change without notice.

CapitalVia does not purport to be an invitation or an offer to buy or sell any financial instrument.

Analyst or any person related to CapitalVia might be holding positions in the stocks recommended.

It is understood that anyone who is browsing through the site has done so at his free will and does not read any views
expressed as a recommendation for which either the site or its owners or anyone can be held responsible for.

Our Clients (Paid Or Unpaid), Any third party or anyone else have no rights to forward or share our calls or SMS or Report or
Any Information Provided by us to/with anyone which is received directly or indirectly by them. If found so then Serious Legal
Actions can be taken.

Any surfing and reading of the information is the acceptance of this disclaimer.

All Rights Reserved.

www.capitalvia.com | 6