In today trading session, we have observed marginal short covering which was reflected on following parameters a) Discount turning into premium, b) Decrease in open interest and c) increase in price. On the options front, we have observed huge fresh put writing at lower levels (5,500 and 5,400) and call writing at 5,700 which indicates market to trade in a narrow range of 5,500 and 5,700 for January series. We may see some more selling pressure in the market on back of more call writing at 5,600 and 5,700 than put. However, the markets would take strong support at 5,600 on back of concentration for January series and 200 day moving average at 5,615. 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 15th January, 2011 close at 24.1 which is 1.0% lower as compared to previous close, after touching an intraday high of 25.5 and low of 23.6
No comments:
Post a Comment