Fears of delay in PSUs’ disinvestment process and nervous sentiments in the US market prevented the winning streak to continue in the fifth consecutive week. The bombing of Iraq’s territory by the US and British planes further aggravated the situation. Week-on-week basis, the S&P CNX Nifty fell by almost 1.5 per cent to close below the crucial 1,000 mark on Friday. MTNL, IPCL, VSNL, Zee Telefilms and ITC were the major losers during the week among the Nifty shares, while the old economy shares like Hero Honda, Reliance Petroleum, Reliance Industries, Asian Paints and Britannia Industries bucked the trend. Overall, out of 50 shares in Nifty index, 34 registered fall as against 16 witnessing rise. The derivative market witnessed reasonable level of trading interest as the positions continued to build up during the week. The rollover trades drove the majority of volumes in this market. The average daily turnover was nearly Rs 1,500 crore and stock futures contributed to around 64 per cent of the total turnover. Index FuturesThis segment witnessed high volumes with a total of 41,337 contracts traded during the week, a marginal increase as compared to the previous week. The outstanding positions continued to build up as the week progressed. The volatility in these contracts remained lower than the Nifty index. Despite the Nifty index remaining above the crucial 1,000 mark for most part of the week, the Nifty futures traded at discount to the cash market value, i.e. negative cost of carry. Specially, the difference was high on Thursday as compared to the other trading days. This indicates the bearish undertone prevailing in the Nifty futures market. Index OptionsThis segment witnessed substantial trading interest with a total of 8,459 contracts traded during the week, a rise of almost 21 per cent as compared to the previous week. This indicates that investors resorted to Nifty options amid rising uncertainty in the cash market. The outstanding positions built up around 1,000 level for both call and put options. Further, the implied volatility as on Friday remained around 10 per cent for Nifty call options while the same rose above 16 per cent for the put options. The put-call ratio also rose consistently during the week. This indicates that investors have rushed to buy put options to protect their investments that resulted in the firming up of the put option premium. Like the Nifty futures this segment also hints at weak market undertone. Options On Individual SharesThough the volume declined as compared to the last week, it was substantially high given the fact that the last week witnessed the expiration of August contracts. Satyam, BPCL, Reliance, Infosys and HPCL were the top traded contracts while the PSU counters, including BPCL, HPCL and MTNL, were the major volume gainers during the week. The put-call ratio, both for outstanding positions and the number of contracts traded, rose for most of the shares which indicates downward bias in the share prices. The implied volatility for put options remained high as compared to call options specially, for Satyam, HPCL and Infosys. This indicates that put options are costlier at present moment because of prevailing uncertainty. Futures On Individual SharesApart from the topline shares like Satyam, Reliance, Infosys and Digital, PSUs made their presence felt in this segment too. MTNL, HPCL and BPCL remained the major volume gainers registering a growth of more than 100 per cent in number of contracts traded. Like Nifty futures, the cost of carry remained negative for the topline shares like Satyam, Reliance, Infosys, Digital, MTNL and ITC. This indicates that there prevailed a bearish undertone for these shares in the market. This fact can also be seen in the price movement of the shares of these companies wherein except for Reliance all others have experienced a fall in the share price. The concentration of trading in few shares continues to be a concerning feature that hints at high speculation in stock futures market. The top five shares contributed to more than 70 per cent of the volumes in this segment. Outlook For FutureThe market could not sustain the gains registered in the past one month. Though political arm-twisting on PSU disinvestment is partly responsible, the main reason has been the lack of consistent support from the institutional investors. More often than not, market is remaining range bound as fence sitters pitch in as soon as the market moves either way. In the present circumstances the market would look towards the outcome of tussle between the US and Iraq and the developments at disinvestment front. It would move in a narrow range, however, a steep fall may not be ruled out in case of any adverse development on aforementioned issues. The rise from this level would be driven by the stock-specific movements. Investors in the derivative market should avoid writing options as the uncertainty level is high. Overall, the market would strive to find direction in the coming week.

Weak low continues to dominate the market in the week. Although the S & P CNX Nifty rose by almost one percent, which was chosen because of the large number of shares in the index. The width of the negative market can be measured by the fact that the 50 Nifty Index, decreased by 25 and 50 shares of the Junior Nifty 35 Index decreased. Bajaj Auto, Zee film telecommunications, Dr Reddy’s, Hero Honda and Wipro was during major gainers L & T, Hindalco, HPCL, Smith Kline Beecham and Gujarat Ambuja were the best losers in the week. The weakness in the domestic market was amply supported by falling U.S. markets successive for the fifth week. The derivatives markets has been largely weak, despite the expiry of September contracts during the week. Because of the bandh after a terrorist attack in Gujarat expiry date was moved from Thursday to Friday. This provided dealers with an additional day to keep their positions September. Volumes were low and overflight trade has pushed the major pieces of trade on the market. Index Future This segment loss registered a total of 35956 volumes of contracts traded during the week. Nearly 50 percent of turnover was generated on Tuesday and Wednesday. Open interest is not much change, indicating that investors have quickly rolled over their positions until the end of October contracts. The costs for the implementation remained negative throughout the week. In addition, the magnitude of the costs of operations carry increased by 4.36 per cent (negative), Monday to 8.96 percent (negative) on Friday confirmed that the downward trend prejudices market. This, in conjunction with small quantities reflects caution dominant low nearby. OptionsThe Nifty index options market was no better as regards the volume of trade fell by almost 30 per cent during the week. In this position excellence, which increases continuously to think that investors are Nifty options, but they are not constant Verwöhn-purchase and sale. However, they are using these markets, especially put options, the preservation of their cash market exposure. The put-call ratio remained high and was dominant level of 0.74 at the end of the week. Wednesday, the number of put options on the call options. In addition, the implied volatility of put options has increased, while the same for call options stressed that the support of the weak market low and shows no sign of recovery. The excellent position of the nearby markets in 2000, was a strike price ranging from 980 to 1,000 options for September. All led to losing positions buyer option. Options on SharesSatyam, Infosys, Reliance, BPCL and HPCL contracts were negotiated early in this category a mass of nearly 70 per cent of volumes. More than half of these amounts were Satyam alone. This indicates a very high concentration of trade, which can be justified on the grounds that the technology that dominates the exchanges of shares during the week. The put-call ratio of HPCL and BPCL reflects signs of a revival of these actions and some gains may be in the near future, while Infosys, Satyam and Digital always have a high proportion of a deflection down. The excellent positions in the digital M & M and Sterlite has decreased which led to lower margins. These actions may be high volumes. Futures on each segment of sharing what has been isolated, except that recorded a rise of almost 11 per cent in volume of trade. But 66 per cent of these amounts were set by the five actions, as a witness in the segment of stock options. Reliance, Infosys, Ranbaxy Digital-negative and costs for the implementation of emotions shows nervous in the futures markets for them. The Bank Futures Reliance Petroleum is the mainstream of this treaty, expire from October 10 and all existing treaties, it would be occupied. In addition, the level of activity in the futures market in the next two weeks. Future Perspectives This few weeks lived in the HLL block deals, Infosys, Ranbaxy, HDFC and a few other actions BSE. This indicates that some players have reached the conclusion that the market has reached bottom, and they go fishing in the earth. The derivatives market not reflect signals to cross the valley. It seems that investors are cautious procedures, and they rejoice quarterly results, which start at Giessen in brief. Shortly before the announcement of these results, the Bank of futures and stock options would witness the segment of trade in high volumes of interest and a great price volatility as a general rule, rumours , Feelings. Currently, the market expects a trigger enjoy in these quarterly results. However, the dominant trend in the world show historical low level, which continues to follow the investors in the Indian market. The FIIs was a great way on Friday. The market, management decided on the basis of their attitude, but next week will witness the directionless market down prejudices.