Monday, August 23, 2010

Markets Today - 23/08/2010

Nifty trading at a discount to August future. Major put writing at 5,500 and more of put concentration than call would act as intermediate support and call concentration at 5,600 levels with less put writing indicates stiff resistance at higher levels. Thus we expect Nifty to expire between 5,600 and 5,400 levels with 5,500 acting as a support for intermediate term.

Option Analysis:
·         Call writing: In August series, major call concentration is witnessed at 5,600 CE of 95.79 lakh contracts. In September series, maximum writing and concentration was seen at 5,600 PE of 48.24 lakh contracts.
·         Put Writing: On the other hand, in August series major concentration in puts is observed at 5,300 of 121 lakh shares. However, in September series concentration is being witnessed at 5,400 strike of 54.97 lakh shares.
Implications: In August series, shedding is seen across strike prices in calls whereas in puts fresh writing and more of put concentration than call is being witnessed at 5,500strike price. Thus we expect Nifty to expire between 5,600 and 5,400 with 5500 acting as an intermediate support.
FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 318 crore with Gross buyers of Rs 2,411 crore and Gross Sellers of Rs 2,093 crore.
·         DIIs were net sellers of Rs 159 crore with Gross buyers of Rs 1,249 crore and Gross sellers of Rs 1,409 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 23rd August, 2010 close at 17.14 which is 2.63% higher as compared to previous close, after touching an intraday high of 17.30 and low of 15.44.
Implications: Indian VIX surged and closed near its high in today’s trading session. We expect it to move upwards and are Bullish on the same which would have negative impact on Nifty

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