Friday, September 24, 2010

Markets Today - 24/09/2010 - Disclaimer Post Applies

Nifty future is trading at a premium to spot. On account of more call writing than put we expect 6,000 to act as a resistance and whereas the downside is limited to 5,900 which would act as a major support for intermediate term and below that 5,800.

Option Analysis:
·         Call writing: Major writing was witnessed at 6,000 CE and 6,100 CE to the tune of 8.64 lakh and 7.62 lakh shares. Concentration is observed at 6,000 CE of 65.87 lakhs shares.

·         Put Writing: On the other hand, major writing was witnessed at 5,900 PE of 4 lakh shares. Concentration is observed at 5,400 PE of 106 lakh shares.

Implications: More of call writing as compared to put and on basis of put concentration we expect 6,000 to act as crucial level and expect Nifty to face resistance at this level. However, the downside is limited to 5,900 for intermediate term on account of more put concentration and writing than call and below that 5,800 to act as support.

FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 534 crore with Gross buyers of Rs 3,034 crore and Gross Sellers of Rs 2,500 crore.
·         DIIs were net sellers of Rs 645 crore with Gross buyers of Rs 872 crore and Gross sellers of Rs 1,518 crore.

India VIX
·         Volatility for 23rd September, 2010 close at 23.9 which is 1.6% lower as compared to previous close, after touching an intraday high of 24.46 and low of 20.71.
Implications: Indian VIX has closed near the high of the day and is expected move upwards and we are Bullish on the same.

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