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WEEKLY
OPTION & DERIVATIVE REPORT

Markets Crashed In Last 2 Days Of The Week !!

25th January 2010 to 30th Jan 2010
 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

Derivative Wrap
Current Close Weekly Change %Change

Spot Nifty 5036 -217.65 -4.14%

Nifty Futures 5019.65 -219.35 -4.18%

Bank Nifty Futures 8761.75 -153.25 -1.72%

K H ey ighlight
The benchmark sensex continued its downtrend for the fourth consecutive day and closed sharply lower —below the
17,000 mark. The sell-off was seen across all the sectors barring FMCG. The markets witnessed sharp cut in the
opening trade following weak global cues. Yesterday, US President BARAK OBAMA stated that banks shouldn't be
allowed to own a hedge fund or use their own money to make bets with hedge funds. This led to a sell-off in global
markets.

The US markets slipped 1-2% on Thursday and Asian markets also followed the same; Nikkei, Taiwan and Kospi fell 2-
2.5%. Shanghai, Hang Seng, Jakarta and Straits Times were down 0.65-1%. European markets were marginally
down, at the time of closing of Indian equities.

The markets reported the highest ever turnover today of Rs 1, 59,492.39 crore. This included Rs 20,562.43 crore from
the NSE cash segment, Rs 1, 32, 392.09 crore from the NSE F&O and the balance Rs 6,537.87 crore from the BSE cash
segment.

G lobal Indices
Current Close Weekly Change %Change

Dow Jones 10172.98 -216.90 -2.09%

FTSE 5302.99 -32.11 -0.60%

CAC 3820.78 -41.38 -1.07%

Nikkei 10590.55 -277.86 -1.12%

G lobal M arket N ews

China's inflation rate may accelerate to more than 5 percent by the end of the year, as government
measures to cool lending will have little effect, said Tao Dong, chief Asia-Pacific economist at Credit
Suisse AG

Asian stocks fell, dragging the benchmark MSCI Asia Pacific Index to its biggest weekly drop since
March, on concern the pace of economic growth will prompt central banks from China to India to curb
price increases
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 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

Derivative Wrap

Asian currencies fell this week, led by South Korea's won and the Indonesian rupiah, on speculation
China will take more steps to curb inflation after economic growth accelerated to a three-year high.

Japan's 10-year bond futures rose for a second week as the yen's gain to a one-month high versus the
dollar damped the outlook for exporter earnings, boosting demand for the safety of government debt.

U.S. stocks sank, capping the market's biggest three-day tumble since March, as financial shares
slumped on President Barack Obama's plan to rein in banks and results at Google Inc. disappointed
investors.

Employment dropped in 39 U.S. states in December, seven more than in the prior month, indicating job
losses were widespread.

Reliance Industries Ltd., India's biggest company by market value, reported its first profit increase in
more than a year as higher natural gas sales outweighed lower earnings from processing oil.

India's rupee fell, completing its biggest weekly slide since October, as President Barack Obama's plan
to curb risk-taking at U.S. banks caused a sell-off in emerging-market assets.

Indian stocks fell, driving the benchmark index to its biggest weekly loss in almost three months, as
Morgan Stanley said “upside risks” in growth and inflation may force the central bank to raise interest
rates.

Source: Bloomberg

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 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

Option Strategy Corner

NIFTY (Lot Size / Expiry Date - 50 / February 25, 2010)

Outlook : Moderately Bulliesh

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

EXCERSICE MAXIMUM STOPLOSS

INDEX PRICE PREMIUM
PRICE PROFIT
5019.65 BUY 5200 FEB LONG CALL UNLIMITED 30
CALL PREMIUM 71.50

PAY OFF TABLE

ON EXPIRY NIFTY CLOSES AT NET PAY OFF FROM CALL OPTION

4900 -71.50

5000 -71.50

5100 -71.50

5200 00.00

5300 28.50

5400 128.50

5500 228.50

5600 328.50

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 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

TECHNICAL PICTURE

Technical View Weekly Levels

MARKET HAS BROKEN VITAL SUPPORT BASE IN THIS WEEK. Properties Values
WE HAD SEEN HUGE SELLING PRESSURE IN MARKET.
TECHNICALLY IF WE SEE NIFTY IN WEEKLY CHART SO WE Support 1 4920
FOUND THAT IT HAD BROKEN CRUCIAL UPWARD SUPPORT
Support 2 4805
LINE WITH HUGE VOLUME & ALSO MADE CLOSING BELOW
IT.NOW FOR UPCOMING WEEK NIFTY HAS NEXT MAJOT Resistance 1 5060
SUPPORT BASE AROUND 4750 TO 4805 LEVEL.CLOSING
Resistance 2 5175
BELOW THIS SUPPORT BASE COULD LEAD NIFTY TOWARDS
4550 LEVELS. BUT CHANCES OF REVERSAL FROM SUPPORTS
ALSO CANNOT BE NEGATED, IF NIFTY CLOSES ABOVE 5180.

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 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

Index Futures and Index Options:

Index futures saw a trading volume of Rs.27789.70 crores arising out of 1138391 contracts and Index options saw 2853280
contracts getting traded at a notional value of Rs.72774.32 crores. The total turnover of the Futures & Options segment of the
Exchange was around Rs.132392.09 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 1006414 50320700 25231.41 32775150

MINI NIFTY 95889 1917780 961.54 1474620

BANK NIFTY 35194 1759700 1544.36 1117450

CN XIT 894 89400 52.39 55700

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 2851528 142576400 72725.7 113021050

MINI NIFTY 873 17460 9.07 29240

BANK NIFTY 879 43950 39.55 137300

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 Weekly Report Derivatives
25th January to 30th Jan 2010
RESEARCH

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