Selling pressure in the Indian markets continued for the second straight trading session on Wednesday, with the NSE Nifty ending below the 5450 level. Index heavyweights like SBI, DLF, Wipro and Infosys were among the major laggards. Even the Mid‐Cap and the Small‐Cap index witnessed some offloading. Bucking the negative trend were select Oil & Gas and Auto stocks. 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. Technically, market managed to close away from the day’s low even though in red. But the outlook seems to be weak and it is having support at 5436 and 5420 while the resistance still is at 5500 and 5535 levels.
India VIX (Inverse relationship between Nifty and Indian VIX)
· Volatility for 23rd February, 2011 close at 26.6 which is 1.1% lower as compared to previous close, after touching an intraday high of 27.2 and low of 26.2
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