In today trading session, we have observed short built-up at higher levels which was reflected on following parameters a) Premium turning into discount, b)increase in open interest by 1% and c) more put shedding than call. 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 19th January, 2011 close at 21.8 which is 1.7% lower as compared to previous close, after touching an intraday high of 21.8 and low of 20.6
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