Nifty future is trading at a premium to October future which has reduced from ~40 points to ~20 points. Higher call writing and put shedding at and above 6,200 strike prices along with major put writing at 6,000 levels indicates markets to be trading in a range. Thus, we see the markets to trade in the range of 6,300 and 6,000.
Option Analysis:
· Call writing: Fresh addition of open interest was observed at 6,200 and 6,300 strike prices of 8.98 lakh and 5.42 lakh shares respectively whereas shedding was seen at in-the-money strike prices. Concentration was seen at 6,300 CE of 63.96 lakh shares.
· Put Writing: On the other hand, major writing was seen at 6,000 PE and 5,900 PE of 2.82 lakh and 2.15 lakh shares respectively. Shedding was observed at 6,200 PE and 6,100 PE of 5 lakh and 6.11 lakh shares. Concentration is being observed at 6,000 PE of 70.6 lakh shares.
Implications: Call writing and put shedding at higher levels indicates less upside to be seen from current levels. Whereas, fresh put writing at lower levels with majority at 6,000 levels indicates strong support at lower levels. So we expect the market to trade in a narrow range of 6,300 and 6,000 on account of concentration.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 1,019 crore with Gross buyers of Rs 3,738 crore and Gross Sellers of Rs 2,718 crore.
· DIIs were net sellers of Rs 694 crore with Gross buyers of Rs 1,325 crore and Gross sellers of Rs 2,019 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 14th October, 2010 close at 20.6 which is 2.9% higher as compared to previous close, after touching an intraday high of 20.99 and low of 18.14.
Implications: Indian VIX surged today after plunging for consecutive four trading sessions. We expect it to move upwards and we are Bullish on the same.
No comments:
Post a Comment