Decrease in Nifty premium to spot along with put shedding at higher strikes implies some weakness at current levels. Major put concentration than call at 5,400 indicates it to act as support for intermediate term and below that 5,300 in worst case scenario. The upside is capped at 5,500 on account of more call concentration than puts. Thus, the broad range for September series is 5,500 and 5,300 and we expect market to trade in this range.
Option Analysis:
· Call writing: In September series, writing was seen between 5,600 and 5,100 with shedding at higher strikes. Maximum writing was witnessed at 5,400 CE and 5,300 CE of 4.53 lakh shares and 4.77 lakh shares with shedding at 5,700 CE of 2.48 lakh shares. Concentration is observed at 5,600 CE of 78 lakh shares.
· Put Writing: Whereas in puts, maximum writing was witnessed at lower strikes and shedding at at-the-money and higher strikes. Major writing was seen at 5,300 PE of 11.68 lakh shares and major shedding at 5,500 PE of 6.3 lakh shares. Concentration is observed at 5,400 PE of 94.23 lakh shares.
Implications: Put concentration and call writing witnessed at 5,400 strike price indicates that this would be a crucial level for the markets, acting as support for intermediate term. We expect 5,400 to act as a major support and below that 5,300 whereas upside may be capped to 5,500.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 184 crore with Gross buyers of Rs 1,418 crore and Gross Sellers of Rs 1,234 crore.
· DIIs were net buyers of Rs 68.7 crore with Gross buyers of Rs 916 crore and Gross sellers of Rs 848 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 31st August, 2010 close at 18.47 which is almost flat as compared to previous close, after touching an intraday high of 19.42 and low of 17.59.
Implications: Indian VIX did not change much for the day. We expect it to move upwards and are Bullish on the same which would have negative impact on Nifty.
No comments:
Post a Comment