Consecutive sixth trading session for high volatility and positive close with gain of 14.8 points or 0.3% to 5,432. On options front, overall fresh addition of open interest in call options was 2x to put options indicating weakness in the market to be continue. Major fresh addition of open interest was seen at 5,700 and 5,500 of 8.3 and 6.6 lacs respectively. However, fresh put addition was seen at 5,400 and 5,300. We expect market to take strong support at 5,400 on back of put concentration of 82 lacs or PCR at 3x., However, we also do not except any major upside in the market because of call open interest at 5,500 to 5,700 strike price for consecutive fourth trading sessions. The strategy to be adopted by an trader would be to initiate fresh Buy at current levels and sell at every rise.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 2nd February, 2011 close at 23.5 which is 0.9% lower as compared to previous close, after touching an intraday high of 23.7 and low of 21.7
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