January put-call ratio declines

F&O OUTLOOK

Operators stayed away from the markets on Thursday, the last day of expiry of the December 2007 derivatives contracts. The Nifty December futures expired on Thursday with short position of 15,752 contracts created above 6,100 levels was uncovered at the end.

It was expected that the trading would be lukewarm as a large part of rollovers were done on Monday and Wednesday.

The put-call ratio of Nifty options for the January series declined from 1.52 to 1.27 on Thursday. The put option activity was seen near 5,900, 6,000 and 6,100 strikes, indicating building of support. Out of the money call writing is seen at 6,400 strike (OI up 6.60 lakh shares) while call buying is seen at 6,100 strike (OI up 1.78 lakh shares).

The market breadth was strong largely on account of participation of small cap stocks with 2038 stocks advanced and 833 declined on the BSE. Consumer durables, metal and PSU stocks were in demand. The auto and IT stocks declined.

Asian markets, which opened before Indian markets, were mixed. European markets, which opened after Indian market, were in green.

The highlights of Thursday's derivative trades were short position in automobile, cement, capital goods, pharmaceuticals and telecom stocks.

The long position was seen in stocks futures of power, private banks and oil and gas. Oil marketer BPCL ended the day on a weak note on account of profit booking in early trades and fresh short position of 4.64 lakh shares were carried forward at the end.