Market Overview - 13/4/2010

Nifty spot closed at 5322 against Nifty future closing at 5330

Implications: Consecutive second trading sessions for higher activity in call options and lower volatility would drag down Nifty from current levels. However, markets quoting at premium and with larger put concentration at 5,200 and 5,300 would restrict the downside.    

Option Analysis

·         Call Writing: Fresh addition of open interest at higher levels and concentration indicates 5,400 to act as a major resistance for April Series. In today trading session, major activity was observed at 5,300CE and 5,400CE of 4.2 lacs and 3.9 lacs shares respectively.

·         Put Writing: Consecutive second trading sessions for unwinding of positions at higher levels imply fresh selling pressure at current levels. Major shedding was seen at 5,300PE and 5,400PE strike prices. We continue to maintain our view on markets that 5,200 to act as strong support in the April series due to PUT concentration.

Implications: Higher activity in call than put and shedding in put options across strike prices indicates some selling pressure to be observed at higher levels. However, we still maintain our view on market that it would trade in a range of 5,200 to 5,400 for April series.

FIIs and DIIs activity in capital market segment

·         FIIs were net buyers of Rs 128 crore with Gross buyers of Rs 3,285 crore and Gross Sellers of Rs 3,156 crore.

·         DIIs were net buyers of Rs 252 crore with Gross buyers of Rs 1,563 crore and Gross sellers of Rs 1,310 crore.

India VIX

·         Volatility for 13^th April, 2010 close at 20 which is same as previous close, after touching an intraday high of 20.14 and low of 19.55.

Implications: Volatility maintained yesterday level of 20 and did not change for today’s session and we still maintain our view of volatility moving up to 30 levels.


Thanks,
Dewang K. Mehta
DENIP Consultants - www.denip.in