In today trading sessions, we have seen some long build after consecutive three trading session of short covering and long built up was observed through 2 derivative parameters: a) fresh put writing with call shedding and b) increase in open interest with discount turning into premium. This was consecutive fourth trading session for higher Put activity at 5,400 and 5,500 adding more than 6.5 lacs each respectively. However, across the call strike price, we have observed shedding in open interest. Concentration of PE and CE is being observed at 5,400 and 5,600 strike price. We believe Nifty may continue its positive momentum till 5,600 on back of call concentration and fresh addition of Put activity. So, profit booking by traders can be done initiate, when Nifty is closer to 5,600.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 16th February, 2011 close at 23.1 which is 0.9% higher as compared to previous close, after touching an intraday high of 23.4 and low of 21.7
Dewang K. Mehta
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