The Strategist

3 February 2015

Activity Tracking

Market Statistics
Product

No. of Contracts

Turnover (Rs.cr)

Stocks (Long Position)

Remarks

CESC, PFC, Petronet

Index Futures

5,68,898

16,281.99

0.61

Stock Futures

9,50,445

31,244.35

Index Options

40,75,480

97,568.17

Stock Options

3,49,217

11,684.60

59,44,044

1,56,779.72

Vol Futures

F&O Total

Techm, Wipro, Kotakbank

UPL, Tatachem, IFCI

Suggesting strength in these counter

Stocks (Short Covering)

Remarks

Exideind, Hcltech, Bankindia

Hindalco, Srtransfin, Syndibank

Suggesting strength in these counter

Relcapital, Ucobank, MRF

Stocks (Short Position)

Yesbank, Coalindia, Icicibank

FII Derivatives Statistics

OI at end of the day
Buy Sell
Contract
1580.43 1583.82
935123
12080.68 11311.25 1799607
2982.93 4869.50 1911012
1786.97 1732.54
59845
Net Inflow/Outflow (Cr)

Index futures
Index options
Stock futures
Stock options

Amount
22358.63
49941.38
59019.79
1863.37

Remarks

Inflow /
Outflow
-3.39
769.43
-1886.57
54.43
-1066.11

Securities in Ban Period

Asianpaints, Tvsmotor, M&MFIN

Havells, Crompgreav, Bankbaroda

Suggesting weakness in these counter

Stocks (Long Liquidation)

Remarks

Divislab, Bhartiartl
Lupin, Idea

Suggesting weakness in these counter

Activity in F&O
Nifty Future closed negative at 8859 levels. Nifty Future OI decreased by 1.98% with a fall in

NIL

price by 0.15%. Market witnessed buying interest in IT, Capital Goods and Consumer Durables
sector stocks while selling pressure was mainly seen in FMCG, Oil & Gas and Metals sector

Nifty Future/Option Trading Guide

stocks. Nifty future closed at a premium of 62 points as compared to 64 points in previous

NIFTY

Short term

trading session. The market turnover decreased by 21.28% in terms of number of contracts

Support

8800

8700-8625

Resistance

9000

9200

Medium term

traded vis--vis previous trading day and in terms of rupees decreased by 20.36%

Indication & Outlook

Put Call Ratio based on Open Interest of Nifty fell down from 0.90 to 0.87 levels compared to
previous trading session. Historical Volatility of Nifty fell down from 19.74 to 19.15 levels but

Nifty View for the Day

Implied Volatility moved up from 19.16 to 19.52 levels.

Conclusion
Now it has to hold above 8900 zones to witness up move
towards 9000 levels.

Nifty future opened negative and made a low of 8805 levels witnessing volatile trade throughout
the session. The bears proved dominant dragging down the index which ended in red with a loss
of around 16 points. Looking at the option data, maximum Put OI is at 8600 followed by 8500
strike while maximum Call OI is at 9000 followed by 9200 strike. Now it has to cross and hold

Q3 Result Today (F&O Stock): ACC, CROMPGREAV,

HEROMOTOCO, LUPIN, NHPC, PNB, TVSMOTOR.

above 8900 zones to witness further up move towards 8950 - 8980 and higher levels. On the
downside support exist at 8800 and below that profit booking may drag it towards 8750-8720
and 8630 levels. Bank nifty opened negative but witnessed some buying action at lower levels
and regained its positive territory ahead of RBI policy and settled with the gain of 57 points. Now
it has to hold above 20000 zones to witness up move towards 20350 and higher levels, while
immediate support is seen at 19750 then 19500 levels.

Anand Rathi

Research

The Strategist

3-Feb-15

Future STT Call

JINDALSTEL : Rs. 156
Execution Price Range

Stop Loss

Sell Between Rs. 158 to Rs. 160

162

Target
153

JINDALSTEL has been witnessing selling pressure at every bounce back

move from last couple of series and not able to recover even after upside
move in the broader market. In last series it added built up of short position
and those short are carried to this series. Overall price pattern is weak so we
are suggesting to sell the stock with the stop loss of 162 for the down side
target of 153 levels.

Future STT Call

SSLT: Rs. 200
Execution Price Range
Sell Between Rs. 202 to Rs. 204

Stop Loss
207

Target
195

SSLT has been making lower top-lower bottom formation and continuously
falling down from last eight series. It is not ready to recover even after the
market momentum which clearly indicates the inherit weakness of the stock. It
has been adding fresh shorts and that short is rolling to one series to next
series. One can sell the stock on small bounce back move with strict stop loss
of 207 for the downside target of 195 levels.

Graphic Snapshot

Anand Rathi

Research

The Strategist

3-Feb-15

Derivatives Lesson: LONG COLLAR STRATEGY

A collar is an options trading strategy that is constructed by holding shares of the underlying stock while simultaneously buying protective puts and selling call options
against that holding. The puts and the calls are both out-of-the-money options having the same expiration month and must be equal in number of contracts.

Technically, the collar strategy is the equivalent of a out-of-the-money covered call strategy with the purchase of an additional protective put.

The collar is a good strategy to use if the options trader is writing covered calls to earn premiums but wish to protect himself from an unexpected sharp drop in the price
of the underlying security.

Max Profit = Strike Price of Short Call - Purchase Price of Underlying + Net Premium Received - Commissions Paid

Max Loss = Purchase Price of Underlying - Strike Price of Long Put - Net Premium Received + Commissions Paid

Breakeven Point = Purchase Price of Underlying + Net Premium Paid

Trading Laws:
A Trader not observing STOP LOSS cannot survive for long.
Never re-schedule your stop loss, square up first and then take a fresh view.
Book small losses by buying / selling near support / resistance, and look for big gains, this will maximize the gains.
Dont try to anticipate the change in main trend, so dont go against trend
DISCLAIMER: This report has been issued by Anand Rathi Securities Limited (ARSL), which is regulated by SEBI. The information herein was obtained from various sources; we do not guarantee its
accuracy or completeness. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities, options, future or other derivatives
related to such securities (related investment). ARS and its affiliated may trade for their own accounts as market maker/ jobber and /or arbitrageur in any securities of this issuer(s) or in related
investments, and may be on the opposite side of public orders. ARS, its affiliates, directors, officers, and employees may have a long or short position in any securities of this issuer(s) or in related
investment banking or other business from, any entity mentioned in this report. This research report is prepared for private circulation. It does not have regard to the specific investment objectives,
financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial situation and the particular needs of any specific investing in any securities
or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such
securities, if any, may fluctuate and that each security's price or value may rise or fall. Past performance is not necessarily a guide to future performance. Foreign currency rates of exchange may
adversely affect the value, price or income of any security or related investment mentioned in this report.

Anand Rathi

Research