Tuesday, March 8, 2011

Markets Today - 08/03/2011 - Disclaimer Post Applies


After a short covering observed in yesterday trading session, we have also observed long built up with open interest increasing by 1% and premium expanding by ~2 points. Currently, PCR for the current month stands at 1.4 from 1.3 yesterday which more put writing than call writing. Put activity was more than 25.6x than call activity, fresh addition of PE open interest was observed at 5,400 of 17.4 lacs and 7.35 lacs. However, CE shedding was observed in ATM options and fresh writing at 5,700. As expected, market bounce back yesterday from 5,400 and expect market to continue positive momentum till 5,600. The traders who have created long position at 5,400 should book partial profits at 5,600 and rest at 5,650.

India VIX (Inverse relationship between Nifty and Indian VIX)
·         Volatility for 8th March, 2011 close at 23.7 which is 6.1% lower as compared to previous close, after touching an intraday high of 25.2 and low of 23.6

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