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WEEKLY
OPTION & DERIVATIVE REPORT

Investors Confidence Shaken By Bloodbath !!


08th February 2010 to 13th Feb 2010
Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

Derivative Wrap
Current Close Weekly Change %Change

Spot Nifty 4718.65 -163.04 -3.33%

Nifty Futures 4708.25 -139.90 -2.86%

Bank Nifty Futures 8205.10 -364.9 -4.25%

K H ey ighlight

The benchmark Sensex shed over 430 points at close following bearish trend across the globe on credit
defaults in the Eurozone countries. The Nifty broke the psychological 4700 mark during the day, but
managed to claw back above that level.

The market breadth was pathetic; about 525 shares advanced while 2410 shares declined on the BSE.
Nearly 211 shares remained unchanged. The BSE Midcap Index was down 2.6% and Smallcap down
3.25%. Sugar and fertiliser stocks were the big losers.

The 30-share BSE Sensex closed at 15,790.93, down 434.02 points or 2.68% and the 50-share NSE Nifty
fell 2.61% or 126.70 points, to settle at 4,718.65, after seeing day's low of 4,692.35.

G lobal Indices
Current Close Weekly Change %Change

Dow Jones 10012.23 10.05 +0.10%


FTSE 5060.92 -78.39 -1.53%

CAC 4012.91 -1.06 -0.03%

Nikkei 10057.09 -298.89 -2.89%

G lobal M arket N ews

Asian stocks fell for the third week on concern rising U.S. job losses and mounting debt in Europe,
combined with China's steps to cool its economy, will drag on the global economic recovery.

Asian currencies dropped for a fourth week, the longest run of losses since June, as concern that some
European nations will struggle to contain and finance budget deficits eroded demand for emerging-
market assets

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Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

Derivative Wrap

Emerging market equity funds lost $1.6 billion in weekly withdrawals, the biggest outflows in 24
weeks, as earnings and Greece's debt woes raised concerns that the global recovery may falter, EPFR
Global said.

U.S. stocks rose, with the Dow Jones Industrial Average erasing a 167-point drop in the final hour of
trading, on speculation the European Union may propose a solution for Greece's budget deficit. Oil,
gold and copper rebounded, and the dollar pared its gain.

Federal Reserve Bank of St. Louis President James Bullard said the U.S. economic recovery “remains on
track” and that he expects job growth in coming months.

Goldman Sachs Group Inc. gave Chairman and Chief Executive Officer Lloyd Blankfein a $9 million all-
stock bonus for 2009, about half the award granted by JPMorgan Chase & Co. to CEO Jamie Dimon,
even as profit reached an all-time high and the shares doubled.

The unemployment rate in the U.S. unexpectedly dropped to 9.7 percent in January and manufacturers
added to payrolls for the first time in three years, which may provide a spark to revive the rest of the
labor market.

DBS Group Holdings Ltd., Southeast Asia's biggest bank, will focus on growing its operations in China
and India without pursuing acquisitions as the lender seeks to reduce dependence on its Singapore
home market.

Source: Bloomberg

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Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

Option Strategy Corner

NIFTY (Lot Size / Expiry Date - 50 / February 25, 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
4757.25 BUY 4700 FEB LONG CALL UNLIMITED 70
CALL PREMIUM 144

PAY OFF TABLE

ON EXPIRY NIFTY CLOSES AT NET PAY OFF FROM CALL OPTION

4500 -144.00

4600 -144.00

4700 00.00

4800 -44.00

4900 56.00

5000 156.00

5100 256.00

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Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

TECHNICAL PICTURE

Technical View Weekly Levels

NIFTY HAS BROKEN VITAL SUPPORT BASE OF 4750 TO 4800 IN Properties Values
THIS WEEK.NOW WE COULD SEE THAT NIFTY COULD TRY TO
TRADE IN THE RANGE OF 4700 TO 4800. NEXT SUPPORT FOR Support 1 4650
NIFTY SEEMS TO BE AROUND THE LEVEL OF 4650. CLOSING
BELOW THAT LEVEL COULD TAKE IT THE NIFTY TILL 4500.WE Support 2 4520
RECOMMEND THAT TRADERS SHOULD GO FOR SELL ON NIFTY Resistance 1 4900
AT HIGHER LEVEL, UNTIL IT CLOSE ABOVE THE LEVEL OF 4950,
CLOSING ABOVE THIS MAY TAKE IT TO 5150 ALSO. Resistance 2 5000

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Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

Index Futures and Index Options:

Index futures saw a trading volume of Rs.19584.72 crores arising out of 856683 contracts and Index options saw 2161420
contracts getting traded at a notional value of Rs.52392.90 crores. The total turnover of the Futures & Options segment of the
Exchange was around Rs.90464.62 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 737853 36892650 17416.42 33084850

MINI NIFTY 85902 1718040 811.19 1736660


BANK NIFTY 32645 1632250 1341.67 1342450

CN XIT 283 28300 15.43 43800

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 2159459 107972950 52340.46 101746600

MINI NIFTY 958 19160 9.45 30160

BANK NIFTY 1003 50150 42.98 185100

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Weekly Report Derivatives
08th February to 13th Feb 2010
RESEARCH

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