Monday, July 26, 2010

Markets Today - 26/07/2010 - Disclaimer Post Applies

In July series, concentration of call is observed at 5,500 of ~120 lakh shares and put at 5,300 of ~99 lakh shares. By observing concentration, we expect next series Nifty may trade/settle between 5,500 and 4950.    

Option Analysis  
·         Call Writing: In today’s trading session call shedding was witnessed across strike prices except at 5,400. Major shedding was seen at out-of-the-money strike with maximum at 5,600 of 7.8 lakh contracts. Concentration observed at 5,500 CE.
·         Put Writing: On the other hand, fresh major writing was witnessed only in 5,300 strike of 0.6 lakh contracts whereas shedding was seen across strikes with maximum at 5,500 of 6.26 lakh contracts. Concentration observed at 5,300 PE.
Implications: On account of concentration, we expect July series to expire within a range where the upside is 5,500 and the downside is capped at 5,300.
FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 196 crore with Gross buyers of Rs 2,078 crore and Gross Sellers of Rs 1,881 crore.
·         DIIs were net sellers of Rs 718 crore with Gross buyers of Rs 742 crore and Gross sellers of Rs 1,461 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 26th July, 2010 close at 19.97 which is 3.79% higher as compared to previous close, after touching an intraday high of 20.05 and low of 18.62.
Implications: Indian VIX continued its upward journey and closed ~4% higher as compared to Friday’s closing. We expect it to move upwards and are Bullish on the same.

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