MSFL Research D E R I V E D V A L U E F & O Trend Positive: AJANTPHARMA, RELCAPITAL, MFSL, CASTROL, F&O turnover (NSE) at Rs 46621.60 bln VGUARD, CANFINHOME, CESC, INDIACEM, ITC, 5000000 4662160 GODFRYPHILIPS, PFC, GODREJIND, ESCORTS, DALMIABHA, 4500000 DABUR, TITAN, ADANIPOWER, RELIANCE, JSWSTEEL, 4000000 3611580 MOTHERSUMI, BANKINIDA, MRF, GAIL, ADANIENT and 3500000 3000000 ICICIBANK have witnessed the Long Build Up of positions. 2500000 2000000 Negative MINDTREE, PVR, HINDUNILVR, DISHTV, INDIGO, 1500000 KOTAKBANK, SOUTHBANK, PCJWELLERS, HEXAWARE, TCS, 1000000 557534 BAKJAJ-AUTO and COLAFIN have witnessed the Short build 362114 500000 130932 175981 up of positions. 0 Index Stock Index Stock Total F&O NSE Cash FII’s were net Buyers to the tune of 3064 crs. While the Future Future Option Option Turnover Turnover Open Interest has gone down by 6.07%. *Cumulative From Monday to Friday FII Trade summary FII’s derivative activities for the week* (Rs in Crore) Buy Sell Net Open Int. Index Futures 28631 29303 -671 124567 Index Option 335216 334361 855 317360 Stock Futures 131597 129186 2410 397594 Stock Options 32086 31616 470 28901 Total … 527530 524466 3064 868422 MSFL Derivatives Strategies ESCORTS Rs 928 PFC Rs 85 Outlook – Positive Outlook – Negative Increase in price coupled with increase in open Interest Increase in price coupled with increase in open Interest indicates long build up of positions. The stock is expected to indicates long build up of positions. The stock is expected to test 960 levels. test 95 levels. Strategy – Covered Call Strategy Strategy – Buy A Call Strategy Buy an Aug Future @ 927.85 Buy an Aug 95 Call @ 1.05 Write an Aug 960 Call @ 30.05 Keep stop loss of 77.65 Keep stop loss of 890.60 Payoff Payoff Maximum profit is 62.2 at or above 960 levels while loss is Maximum profit is Unlimited above 96.05 levels while loss restricted to 7.2 at stop loss level. is restricted to 1.05 Logic Logic Buying a future allows one to gain in the up move while Buying an OTM Call allows one to gain in the up move. writing an OTM call reduces cost of strategy. Meet Joshi Weekly 31 .