Nifty future is trading at par with spot. We expect 6,000 to act as a support on the downside on account of more of put concentration than call and on the upside 6,100 to act as a stiff resistance on basis of more call concentration than puts. However, on basis on concentration the range for November expiry is 6,200 on the upside and 5,900 on the downside.
Option Analysis:
· Call writing: In November series, major call concentration is witnessed at 6,200 CE of 82.7 lakh shares along with fresh writing of 3.45 lakh shares. In December series, maximum writing is seen between 6,200 CE and 6,400 CE where the total added outstanding open interest is 87 lakh shares with concentration at 6,000 CE.
· Put Writing: On the other hand, in November series, put concentration is witnessed at 5,900 PE of 66.5 lakh shares and major writing at 6,000 PE of 15.99 lakh shares. In December series, maximum writing is witnessed at in-the-money strikes i.e. between 5,800 PE and 6,000 PE and at 5,500 PE.
Implications: In November series, more of call concentration than put at 6,100 indicates this level to act as stiff a resistance and above that 6,200 for expiry on account of maximum call concentration. However the downside is limited to 5,900 on basis of major put concentration since the start of October expiry.
FIIs and DIIs activity in capital market segment
· FIIs were net buyers of Rs 335 crore with Gross buyers of Rs 2,906 crore and Gross Sellers of Rs 2,570 crore.
· DIIs were net buyers of Rs 212 crore with Gross buyers of Rs 1,373 crore and Gross sellers of Rs 1,160 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 22nd November, 2010 close at 19.9 which is 7.7% lower as compared to previous close, after touching an intraday high of 21.85 and low of 19.4.
Implications: Indian VIX traded plunged and thereby closed below 20 levels. We expect it to move consolidate at current levels.
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