Wednesday, September 8, 2010

Markets Today - 8/9/10 - Disclaimer Post Applies

Nifty trading at a discount to spot, call shedding at lower strike for third consecutive day implies markets to take strong support at lower levels. However, we expect 5,600 to act as a crucial level on account of more of call concentration than put. We expect Nifty to take support at 5,500 for intermediate term and 5,400 for the series on account of concentration whereas the upside is capped at 5,700.

Option Analysis:
·         Call writing: Consecutive third trading day of shedding witnessed across strike prices. Major shedding was seen at 5,400 CE of 3.79 lakh shares and writing at 5,800 CE of 3.12 lakhs shares. Concentration is observed at 5,700 CE of 115.5 lakh shares.

·         Put Writing: On the other hand, consecutive third trading session of writing witnessed at 5,600 PE of 7.5 lakh shares and at 5,300 PE of 8.92 lakh shares. Concentration is observed at 5,400 PE of 124 lakh shares.

Implications: On account of concentration we expect September series to settle between 5,400 at lower end and 5,700 at higher end.
FIIs and DIIs activity in capital market segment
·         FIIs were net buyers of Rs 281 crore with Gross buyers of Rs 2,368 crore and Gross Sellers of Rs 2,086 crore.
·         DIIs were net sellers of Rs 98 crore with Gross buyers of Rs 1,210 crore and Gross sellers of Rs 1,309 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 8th September, 2010 close at 15.97 which is almost flat as compared to previous close, after touching an intraday high of 16.32 and low of 15.16.
Implications: Indian VIX is trading at its support and we expect it to move upwards and are Bullish on the same which would have negative impact on Nifty.

No comments:

Post a Comment