Tuesday, August 24, 2010

Markets Today - 24/08/2010 - Disclaimer Post Applies

Nifty future trading at a premium to August future. Major concentration observed at 5,600 CE and 5,300 PE indicate August series to expire between 5,550 and 5,350 wherein 5,480 acting as an intermediate support. The wide range for September series on account of concentration is 5,600 and 5,400.

Option Analysis:
·         Call writing: In August series, major call concentration was witnessed at 5,600 CE of 99 lakh shares along with fresh writing of 3.3 lakh shares. In September series, maximum writing and concentration was seen at 5,600 PE of 51 lakh shares.

·         Put Writing: On the other hand, in August series major concentration in puts is observed at 5,300 and 5,400 of 122 lakh shares and 120 lakh shares respectively along with fresh writing witnessed today. However, in September series concentration is being witnessed at 5,400 strike of 58.74 lakh shares.
Implications: In August series, shedding is seen across strike prices in calls with fresh writing at 5,600 whereas in puts fresh writing and more of put concentration than call is being witnessed at 5,500 and 5,400 strike price. Thus we expect Nifty to expire between 5,600 and 5,400 on account of concentration.
FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 191 crore with Gross buyers of Rs 2,509 crore and Gross Sellers of Rs 2,318 crore.
·         DIIs were net sellers of Rs 689 crore with Gross buyers of Rs 1,065 crore and Gross sellers of Rs 1,754 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 24th August, 2010 close at 16.99 which is 0.88% lower as compared to previous close, after touching an intraday high of 17.80 and low of 15.58.
Implications: Indian VIX closed almost flat as compared to yesterday’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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