Nifty future is trading at a huge premium to October future which is positive. Major call shedding and major fresh put writing at 6,200 levels indicates markets to continue it’s up move after seven days of consolidation. On the upside the first resistance comes at 6,300 on basis of concentration whereas on the downside the support is at 6,200 for intermediate term and below that 6,000 for October series.
Option Analysis:
· Call writing: Fresh addition of open interest was observed at 6,400 and 6,300 strike prices of 14.1 lakh and 5.79 lakh shares respectively whereas shedding was seen at 6,200 CE of 19.12 lakh shares. Concentration has been shifted from 6,200 CE to 6,300 CE (58.53 lakh shares).
· Put Writing: On the other hand, major writing was seen at 6,200 PE and 6,300 PE of 35.95 lakh and 19.82 lakh shares respectively. Shedding was observed at 6,000 PE of 19.77 lakh shares. Concentration is being observed at 6,000 PE of 67.77 lakh shares.
Implications: Major shedding in calls at 6,200 as well as in in-the-money strikes and major fresh writing in puts at 6,200 indicates market to continue its upward momentum. However on the upside the first resistance comes at 6,300 on account of concentration, whereas on the downside the first support comes at 6,200 for intermediate term and below that 6,000 for October series.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 2,103 crore with Gross buyers of Rs 5,833 crore and Gross Sellers of Rs 3,730 crore.
· DIIs were net sellers of Rs 1,354 crore with Gross buyers of Rs 1,341 crore and Gross sellers of Rs 2,696 crore.
India VIX
· Volatility for 13th October, 2010 close at 20 which is 2.4% lower as compared to previous close, after touching an intraday high of 20.51 and low of 19.
Implications: Indian VIX plunged for consecutive fourth trading session and has been consolidating around these levels. We expect it to move upwards and we are Bullish on the same.
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