Nifty future is trading at a ~30 points premium to October future which is positive. Strong put writing and concentration at 6,000 level indicates this as to act as a strong support. However, on the upside we expect 6,200 to act as a resistance on basis of concentration for intermediate term and above that 6,300.
Option Analysis:
· Call writing: During the week, major addition was witnessed between 6,400 CE and 6,100 CE where the total outstanding open interest added is 68.74 lakh shares with maximum addition seen at 6,100 CE of 22 lakh shares. Shedding was seen at in-the-money strikes. Concentration was seen at 6,200 CE of 73 lakh shares.
· Put Writing: On the other hand, major writing was seen between 6,300 PE and 6,100 PE where the total outstanding open interest added is 52.62 lakh shares with maximum addition at 6,200 PE. Concentration is being observed at 6,000 PE of 85 lakh shares.
Implications: Strong put writing and concentration at 6,000 for second consecutive trading session indicates this level to act as a strong support for Nifty. Whereas on the upside 6,200 to act as a resistance on account of concentration for intermediate term and above that 6,300.
FIIs and DIIs activity in capital market segment
· FIIs were net sellers of Rs 112 crore with Gross buyers of Rs 2,281 crore and Gross Sellers of Rs 2,394 crore.
· DIIs were net sellers of Rs 1,053 crore with Gross buyers of Rs 1,150 crore and Gross sellers of Rs 2,203 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 15th October, 2010 close at 22.65 which is 9.95% higher as compared to previous close, after touching an intraday high of 22.67 and low of 17.8.
Implications: Indian VIX surged in consecutive second trading session and closed at its high. We expect it to move upwards and we are Bullish on the same which would have negative impact on Nifty.
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