In today trading sessions, we have seen some long build for consecutive two trading session and long built up was observed through 2 derivative parameters: a) fresh put writing with call shedding and b) increase in open interest. This was consecutive 5th trading session for higher Put activity at 5,500 and 5,600 adding ~21 lacs and 9.3 lacs each respectively. However, across the call strike price, we have observed shedding in open interest except 5,600. Concentration of PE and CE is being observed at 5,400 and 5,600 strike price. We believe positive momentum may fizzle out when Nifty is closer to 5,600 on back of call concentration. So, traders should book partial profit at that level and wait for fresh long positions to be created .
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 17th February, 2011 close at 22.6 which is 2.1% lower as compared to previous close, after touching an intraday high of 23.4 and low of 22.0
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