Nifty future is trading at a premium of ~46 points to October future is positive. Strong put concentration at 6,000 level indicates this as to act as a strong support. However, on the upside we expect 6,200 and 6,300 to act as a resistance on basis of call concentration and put shedding witnessed for consecutive second trading session.
Option Analysis:
· Call writing: Major addition witnessed at 6,000 CE and 6,100 CE where the total outstanding open interest added is 9.66 lakh and 5.47 lakh shares whereas shedding was seen at 6,200 CE of 6.25 lakh shares. Concentration was shifted from 6,200 and is now at 6,300 CE of 70.25 lakh shares.
· Put Writing: On the other hand, major addition witnessed at 6,100 PE which added 5.12 lakh shares and shedding seen at 6,300 PE and 6,200 PE of 10.87 lakh and 7.82 lakh shares. Concentration is being observed at 6,000 PE of 83 lakh shares.
Implications: On account of put concentration, there is a strong support at 6,000 at the lower end. Whereas, on the upside 6,200 and 6,300 would act as a stiff resistance on basis of call concentration and put shedding witnessed for consecutive second trading session.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 335 crore with Gross buyers of Rs 3,765 crore and Gross Sellers of Rs 3,430 crore.
· DIIs were net sellers of Rs 1,218 crore with Gross buyers of Rs 1,250 crore and Gross sellers of Rs 2,496 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 18th October, 2010 close at 22.35 which is 1.35% higher as compared to previous close, after touching an intraday high of 23.99 and low of 21.97.
Implications: Indian VIX traded in a narrow range in today’s trading session. We expect it to move upwards and we are Bullish on the same which would have negative impact on Nifty.
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