Reports ----- for Friday 26th

Dealers Diary
Thursday’s market settled on a firm note on buying in index pivotals.However, trade was choppy towards the end of the day ahead of expiryof October 2007 derivatives contracts. Cues from Asia were positive with most of the markets Asia ending in green yesterday. Stocks from the Banking, Auto, Consumer Durables and Capital Goods sector registered gains. Metal stocks were the outperformers. FMCG and Healthcare stocks ended in the negative territory. Among the frontliners, HUL, Bharti Airtel, Maruti Udyog, ICICI Bank and Tata Steel gained 2-8%, while HDFC, ITC, ACC, Dr. Reddy’s and Cipla lost ground by 1-5%. In the midcap segment, Amtek Auto, Bharat Bijli, Cranes Software, GTL Infra and Gulf Oil Corp gained 9-18%, whereas IVRCL Infra, SRF, Dena Bank, 3i Infotech and Strides Arcolab lost around 5%.

Markets Today
The trend deciding level for the day is 5548/18710. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally upto 5627 / 18961 levels. However, if NIFTY trades below 5548/18710 for the first half-an-hour of trade then it may correct upto 5490-5411/ 18520-18270.

Events for the Day (Quarterly Results)
Acrow India
Advanta
Andhra Bank
Apollo Tyre
Atlanta
Avaya Global
Bata
B E M L
Bharat Elect
Bharat Forge
Clutch Auto
Educomp
I T C
Indian Hotels
Lanco infra
Kotak Bank
Nagarjuna Fertilizer
Pantaloon Retail
Syndicate Bank
Tata Steel
Tulip IT

Derivative Report Comments

• Open interest in Nifty futures has increased by 4.22% along with the increase in Nifty price by 1.32% from 5496.15 to 5568.95. The Nifty PCR-OI has increased from 1.17 levels to 1.23 levels.
• Nifty November series discount has narrowed from 39.90 points to 33.80 points. The current COC in November series is negative 6.33%. Nifty Futures annual volatility has reduced from 48.45% to 47.60%.
• Nifty has shown a rollover of 70.78%.
• Stocks which have shown maximum rollover are GTL, JSWSTEEL, TATACHEM, SKUMARSYNF, ORCHIDCHEM, IFCI and NDTV.
• Stocks currently trading with significant premium in November series are STAR, EKC, CHENNPETRO, BRFL and SRF.

Derivative Report View

• The options data have shown humongous addition of OI in the 5500 strike price Put option. Also, the same strike price Call option has added good OI.
• In the beginning of a new series we generally see Nifty trading at a premium however, this time we have seen Nifty trading at a significant discount. Moreover, the volatility in Nifty is at very high levels. When Nifty price was rising we did not see a very significant rise in Nifty OI. However, in the past few sessions with a fall in Nifty price we have witnessed a good rise in OI. Nifty rollover is a healthy 70% which suggest that some short positions too have been rolled over. Hence participants should form positions cautiously in Nifty.
• We can see significant build-up in Heavy weight IT counters like INFOSYSTCH, SATYAMCOMP, TCS and WIPRO and we may see these counters showing relative strength in the coming trading sessions.
• The maximum addition of OI was seen in Financial Institution sector. IFCI has shown a huge addition of OI along with positive CoC and may continue trading with positive bias.

----- With due apologies and full credits to Angel Broking-----