Nifty future is trading at a huge premium to October future. On account of call shedding at in-the-money strikes and put writing and concentration at 6,000 indicates that it would act as a support for October series whereas the upside is capped at 6,200 and above that 6,300 on account of call concentration and less put writing.
Option Analysis:
· Call writing: In today’s trading session, shedding was witnessed at in-the-money strike prices. Major call shedding was witnessed at 6,100 CE of 4.68 lakh shares whereas fresh writing was seen at 6,300 CE of 11.86 lakh shares. Concentration is being observed at 6,300 CE of 41.48 lakh shares.
· Put Writing: On the other hand, major writing was seen at 6,000 PE and 5,700 PE of 9 lakh shares and 9.59 lakh shares respectively. Concentration is being observed at 6,000 PE of 72.24 lakh shares.
Implications: Call shedding at lower strikes whereas put writing and concentration at 6,000 level indicates 6,000 to act as a support for October series. However, on the upside Nifty will face resistance at 6,200 and above that 6,300 on account of more of call concentration.
India VIX
· Volatility for 5th October, 2010 close at 22.17 which is 2.76% lower as compared to previous close, after touching an intraday high of 23 and low of 21.81.
Implications: Indian VIX plunged in today’s trading session. We expect it to move upwards and we are Bullish on the same.
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