In yesterday trading sessions, as expected market saw some profit booking at higher levels which was above 5,600. The markets opened on an optimistic note and ended the session with sizable losses after five bullish sessions in a row. The benchmark indices ended with over 1.5 % losses at close. The traded volumes were higher as compared to the previous session, which is a negative indicator for a bearish session. More call activity was seen than put activity, 5,400 and 5,500 CE added open interest of 10 and 15 lacs shares. Concentration of PE and CE is being observed at 5,400 and 5,600 strike price. We believe market not to go below 5,400 because of concentration level, So an traders should reverse their position at 5,400 and go long on market with target of 5,600.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 18th February, 2011 close at 24.2 which is 7.1% higher as compared to previous close, after touching an intraday high of 24.2 and low of 20.4
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