Daily market derivatives trading report by epic research on 18 july 2014

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DAILY DERIVATIVES REPORT 181h JULY 2014

NIFTY SNAPSHOT & PIVOT POINTS SPOT

FUTURE

COST OF CARRY

TOTAL FUT OI

PCR OI

PCR VOL

ATM IV

CURRENT

7640

7659

6.24

16492000

0.82

0.88

14.04

PREVIOUS

7624

7643

5.95

16154100

0.78

0.96

14.21

CHANGE(%)

0.21%

0.21%

-

2.09%

-

-

-

PIVOT LEVELS

S3

S2

S1

PIVOT

R1

R2

R3

NIFTY FUTURE

7650

7607

7633

7654

7680

7701

7748

MARKET ROUNDUP The Indian equity market ended with modest gains on Thursday extending its winning streak to third consecutive trading session. Signs of recovery in the macro economic data, positive cues from the international equity markets and some relief from the rain gods have lifted the sentiment on the street. The power stocks were in action after media reports stated that The Delhi Electricity Regulatory Commission approved a tariff hike of 8.32% for the three electricity distribution utilities (discoms), BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution Ltd for the fiscal 2014-15 Among the other major gainers were the metals, consumer durables, capital goods and healthcare stocks. Even the

F&O HIGHLIGHTS Post a flat start, the index traded in a tight band amid high volatility in the absence of any major trigger. It finally ended the day after adding only 15 points. The premium remained almost flat and settled at 18 points. India VIX increased 1.25% and settled at 14.96 FIIs bought 1912 crore while DIIs sold 1316 crore in the cash segment. FIIs bought 520 crore in index futures and 632 crore in index options. In stock futures, they bought 115 crore The highest Put base stands at the 7500 strike with over 69 lakh shares. The highest Call base stands at the 8000 strike with over 87 lakh shares. The 7700 and 7800 Call strikes have seen addition of 10.75 and 1.42 lakh shares, respectively.On the Put side, 7700, 7600 and 7500 strikes have seen addition of 2.50, 9.70 and 6.05 shares, respectively

INDEX OUTLOOK Nifty Future: The Nifty is likely to open negative on the back of weak global cues. It is likely to trade in the range of 7580-7700. The trading strategy would be to create shorts near 7675-7680 for targets of 7645 and 7625. On the other hand, one can enter longs if the index finds support near 7580 Bank Nifty Future: The index is likely to find support near 15100 with resistance now pegged at 15500

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