Nifty (January) futures for the first time in last 3-4 months has turned from premium to discount. In Friday trading sessions, we have observed huge short built-up at every levels reflected by two major indicators a) Price decline with increase in open interest by ~1.4 million shares and b) Premium turning into discount. On the option side, weakness was reflected from overall more call activity with put shedding. Higher call writing was seen at 5,700 and 5,600 adding 19 and 22 lacs shares respectively while higher Put activity was seen at 5,500 and 5,600 of 10 and 8 lacs shares. We may see more selling pressure in coming days on back of weakness seen across derivative parameter. However, we see market taking strong support at 5,600 on back of concentration for January series. So, the strategy remains the same to initiate fresh buy at current levels and use every rise to book profits.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 14th January, 2011 close at 24.1 which is 2.8% lower as compared to previous close, after touching an intraday high of 24.1 and low of 20.9
No comments:
Post a Comment