Implications: Range Bound View: Nifty futures trading at premium to spot. Major put writing at 5,200 for last few trading sessions thus to act as major support for intermediate term and major call writing at higher levels with concentration at 5,500. Our main concern at present is volatility, which is trading at its support levels. The broad range for July series is 5,500 and 5,200 and we expect market to trade in this range.
Option Analysis
· Call Writing: During the week major writing was witnessed at higher strikes. The combined build up in open interest build up between 5,600 and 5,300 strike prices is ~1 crore shares with majority at 5,500 strike price. Concentration of open interest is observed at 5,500 of 52.61 lakh shares.
· Put Writing: On the other hand, fresh writing was observed in between 5,300 and 5,000 strike prices where the combined build up in opened interest is ~1.36 crores shares with maximum build up seen at 5,200 strike price. Major concentration is being observed at 5,200 strike price of 61.17 lakh shares.
Implications: Call writing at every higher strike price indicates Nifty would face stiff resistance at every upper level. Whereas, fresh put writing at lower levels with majority at 5,200 indicates strong support at this levels. We expect market to trade between 5,500 and 5,200 for July series on account of concentration.
FIIs and DIIs activity in capital market segment
· FIIs were net sellers of Rs 308 crore with Gross buyers of Rs 1,298 crore and Gross Sellers of Rs 1,605 crore.
· DIIs were net sellers of Rs 446 crore with Gross buyers of Rs 1,185 crore and Gross sellers of Rs 1,631 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 25th June, 2010 close at 20 which is almost flat as compared to previous close, after touching an intraday high of 20.68 and low of 19.45.
Implications: Indian VIX is trading at its support and dint change much for today’s trading session. We expect it to move up and are “Bullish” on the same.
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