Markets Today - 09/11/2010 - Disclaimer Post Applies

Nifty future is trading at a premium of ~30 points to November future. Call concentration and major put writing at 6,300 indicates 6,300 to act as a crucial level for markets acting as a support as well as resistance. However fresh writing in puts at higher levels indicates markets gaining strength and prevailing positive sentiment at current levels and markets thereby setting for an up move. On account of concentration the range for November series is 6,500 on the upside and 6,000 on the downside. 

Option Analysis:

·         Call writing: Shedding was seen at in-the-money strikes with maximum at 6,100 CE and 6,000 CE since last few trading session. Whereas fresh writing was seen at higher strikes with majority at 6,400 CE and 6,300 CE of 2.2 lakh and 1.94 lakh shares respectively. Concentration is witnessed at 6,500 CE of 72.7 lakh shares. 

·         Put Writing: On the other hand, major fresh writing in puts was seen at 6,300 PE of 15.74 lakh shares and has been witnessed for past few trading sessions. Concentration is witnessed at 6,000 PE of 72 lakh shares.

Implications: Call concentration and major put writing at 6,300 indicates 6,300 to act as a crucial level for markets acting as a support as well as resistance. However fresh writing in puts at higher levels indicates markets gaining strength and prevailing positive sentiment at current levels and markets thereby setting for an up move. On account of concentration the range for November series is 6,500 on the upside and 6,000 on the downside.

FIIs and DIIs activity in capital market segment

·         FIIs were net buyers of Rs 474 crore with Gross buyers of Rs 3,652 crore and Gross Sellers of Rs 3,178 crore.

·         DIIs were net sellers of Rs 528 crore with Gross buyers of Rs 1,260 crore and Gross sellers of Rs 1,789 crore.

India VIX (Inverse relationship between Nifty and Indian VIX)

·         Volatility for 09^th November, 2010 close at 18.75 which is 4.4% lower as compared to previous close, after touching an intraday high of 19.78 and low of 17.17.

Implications: Indian VIX plunged in today’s trading session and has been trading below 20 levels. We expect it to be subdued and consolidate at current levels.