Nifty trading at discount to September series, concentration and major writing observed at 5,600 CE and 5,400 PE indicates the range for September 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 September series, major writing was witnessed at 5,600 CE and 5,500 CE of 8.82 lakh shares 8.43 lakh shares respectively. Concentration is observed at 5,600 CE of 67.41 lakh shares.
· Put Writing: Whereas in puts, maximum writing was witnessed at 5,400 PE of 10.25 lakh shares. Concentration is observed at 5,400 PE of 74.46 lakh shares.
Implications: In today’s trading session writing was witnessed across strike prices in calls as well as puts in September series. On the basis of major writing and concentration, the wide range for September 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 sellers of Rs 276 crore with Gross buyers of Rs 3,639 crore and Gross Sellers of Rs 3,915 crore.
· DIIs were net buyers of Rs 38 crore with Gross buyers of Rs 1,523 crore and Gross sellers of Rs 1,485 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 26th August, 2010 close at 9.67 which is 9.67% lower as compared to previous close, after touching an intraday high of 18.92 and low of 16.90.
Implications: Indian VIX plunged by ~9.5% 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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