Nifty December future is trading at a premium with spot. On account of more put concentration than call at 5,800, we expect Nifty to bounce above this level and thereby act as a support. However the upside is capped at 6,000 on account of concentration. Thus the trend suggests that market would trade in a broad range 6,000 and 5,700 on account of concentration with negative bias.
Option Analysis:
· Call writing: Major call writing is witnessed at 6,000 CE and 5,900 CE of 10.35 lakh and 8.97 lakh shares. Concentration is witnessed at 6,000 CE of 48 lakh shares.
· Put Writing: On the other hand, put writing is witnessed between 5,700 PE and 5,500 PE where the total OI added is 36.4 lakh shares with maximum at 5,500 PE. Maximum shedding is seen at 5,900 PE of 1.3 lakh shares. Concentration is at 5,600 PE of 56 lakh shares.
Implications: On account of more put concentration than call at 5,800, we expect Nifty to bounce above these levels and thereby act as a support. However the upside is capped at 6,000 on account of concentration. Thus the broad range for December expiry is 6,000 and 5,700 on account of concentration.
FIIs and DIIs activity in capital market segment
· FIIs were net sellers of Rs 1,208 crore with Gross buyers of Rs 6,385 crore and Gross Sellers of Rs 7,593 crore.
· DIIs were net buyers of Rs 197 crore with Gross buyers of Rs 2,574 crore and Gross sellers of Rs 2,376 crore.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 25th November, 2010 close at 21.6 which is 12.4% lower as compared to previous close, after touching an intraday high of 24.68 and low of 21.12
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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