Nifty future is trading at a premium of ~34 points to October future. Shedding in call and put open interest indicates lack of view and confidence on direction of Nifty. Technically Nifty failed to close above 6,115 levels or at high of the day. Thus we expect 6,000 to act as a strong support on account of concentration and on upside 6,200 and 6,300 would act as stiff resistance.
Option Analysis:
· Call writing: Shedding in call open interest was seen across strikes with majority at 6,100 CE and 6,000 CE of 20.89 lakh and 12.89 lakh shares respectively. Concentration is being observed at 6,300 CE of 76 lakh shares.
· Put Writing: On the other hand, writing in puts was witnessed at 6,100 PE, 5,900 PE and 5,700 PE, whereas rest all strikes witnessed shedding in open interest. Major addition was observed at 6,100 PE of 7 lakh shares. Concentration is being observed at 6,000 PE of 77.8 lakh shares.
Implications: Shedding of call and put open interest across strike prices indicates lack of view and confidence on the direction of the markets. However we expect 6,000 to continue acting as a strong support on account of concentration and on the upside 6,200 and 6,300 would act as a stiff resistance.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 851 crore with Gross buyers of Rs 3,580 crore and Gross Sellers of Rs 2,728 crore.
· DIIs were net sellers of Rs 230 crore with Gross buyers of Rs 1,539 crore and Gross sellers of Rs 1,770 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 21st October, 2010 close at 22 which is 6.75% lower as compared to previous close, after touching an intraday high of 23.8 and low of 21.92.
Implications: Indian VIX plunged 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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