Implications: Decrease in volatility, lower put writing than calls at higher levels indicates market losing its current momentum and would see some correction in coming treading sessions. However, at current scenario correction may not be larger on account of strong put writing and concentration at 5,200 levels. So, we expect the market to trade above 5,200 and below 5,500. So, derivative strategy to be adopted by traders can be sell 5,500 CE and 5,200 PE and stay invested for whole series.
Option Analysis
· Call Writing: Higher fresh writing was witnessed between 5,400 and 5,600 strike prices. 5,400 CE added open interest of 2.81 lakh shares and 3.31 lakh shares at 5,500. Concentration is being observed at 5,500 strike price of 55.93 lakh shares.
· Put Writing: On the other hand, major writing was observed at lower levels. Higher addition was seen at 5,200 of 6.6 lakh shares and 5.9 lakh shares at 5,300. Major concentration is being observed at 5,200 strike price of 67.81 lakh shares.
Implications: Concentration and strong put writing at 5,200 levels indicates this as to act as a strong support for June Series and 5,300 for the near term. Whereas call writing at higher level indicates Nifty losing its current momentum and looks stress at current levels. We expect market to trade between 5,500 and 5,200 for July series on account of concentration.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 792 crore with Gross buyers of Rs 2,219 crore and Gross Sellers of Rs 1,426 crore.
· DIIs were net sellers of Rs 94 crore with Gross buyers of Rs 1,416 crore and Gross sellers of Rs 1,510 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 28th June, 2010 close at 19.55 which is 2.25% lower as compared to previous close, after touching an intraday high of 20.84 and low of 19.55.
Implications: Indian VIX is trading at its support closed at its low in today’s trading session. We expect it to move up and are “Bullish” on the same.
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