Nifty future is trading at a huge premium to October future. Major call concentration and writing at 6,200 levels for past few trading sessions indicates this to act as a stiff resistance on the upside. However the downside is limited to 6,000 levels on account of put concentration and writing.
Option Analysis:
· Call writing: Fresh addition of open interest was observed at 6,100 and 6,200 strike prices of 5.88 lakh and 4.25 lakh shares respectively whereas shedding was seen at higher strikes between 6,500 and 6,300 with majority at 6,400 CE of 7 lakh shares. Concentration is being observed at 6,200 CE of 65.46 lakh shares.
· Put Writing: On the other hand, major writing was seen at 6,000 PE of 7.79 lakh shares and 5,900 PE of 5.5 lakh shares. Concentration is being observed at 6,000 PE of 87.55 lakh shares.
Implications: Shedding in calls at deep out-of-money strikes and call writing along with concentration at 6,200 strike indicates this as to act as a strong support on the upside. However on the downside, we expect 6,000 to act as a strong support for October series on account of put concentration and continuous writing. Thus the range for Nifty is 6,200 on the upside and 6,000 on the downside.
India VIX
· Volatility for 12th October, 2010 close at 20.51 which is 3.25% lower as compared to previous close, after touching an intraday high of 22.22 and low of 20.50.
Implications: Indian VIX plunged for consecutive third trading session and has been consolidating around these levels. We expect it to move upwards and we are Bullish on the same.
No comments:
Post a Comment