Thursday, July 29, 2010

Markets Today - 29/07/2010 - Disclaimer Post Applies

Nifty trading at premium to August series, concentration and writing observed at 5,600 CE and 5,300 PE indicates the range for August series to be 5,600 on the upside whereas the downside is capped at 5,400 to act as a support for intermediate term and 5,300 in worst case scenario.

Option Analysis:
·         Call writing: In August series, major writing was witnessed at 5,600 CE and 5,500 CE of 11.45 lakh shares 9.63 lakh shares respectively. Concentration is observed at 5,600 CE of 56.98 lakh shares.

·         Put Writing:  In August series, put writing was witnessed at lower strikes with maximum writing at 5,300 PE of 15.46 lakh shares. Concentrations is observed at 5,300 PE of 66.73 Lakh shares

Implications: In today’s trading session writing was witnessed across strike prices in calls as well as puts in August series. On the basis of major writing and concentration, the wide range for August series is 5,600 on the upside whereas 5,400 on the downside for intermediate term and 5,300 for worst case scenario.
FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 578 crore with Gross buyers of Rs 3,498 crore and Gross Sellers of Rs 2,919 crore.
·         DIIs were net sellers of Rs 920 crore with Gross buyers of Rs 1,430 crore and Gross sellers of Rs 2,350 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 29th July, 2010 close at 18.33 which is 6% lower as compared to previous close, after touching an intraday high of 19.65 and low of 18.33.
Implications: Indian VIX plunged in today’s trading session and closed at its low. We expect it to move upwards and are Bullish on the same.

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