In today trading session, we have observed short covering which was reflected on following parameters a) Premium widen up from current levels, b) Decrease in open interest by 5.1% and c) increase in price by 1.3%. On the options front, we have observed huge put shedding than call at an overall level. We believe market not to sustain its current positive momentum and may see some selling pressure at higher levels. 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 to be adopted by traders should be to book profits at higher levels.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 18th January, 2011 close at 21.5 which is 8.9% lower as compared to previous close, after touching an intraday high of 23.6 and low of 21.4
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