Markets gained 1.7% on account of short covering observed through widening of premium from 12 to 24 points with decline in open interest by 1.6% and PCR increasing from 1.33 to 1.40 which indicates more of put writing than call writing. On Options front, we have seen more put activity than call by 11x at ATM and OTM put. 5,500 and 5,400 PE added fresh open interest of 11.1 and 12.8 lacs shares. However, fresh CE writing was seen higher levels 5,800 and 5,900 with CE shedding between 5,200 to 5,700.Concentration of CE and PE stands at 5,600 and 5,400. We expect market to continue its upward momentum back of PE concentration with CE shedding at ATM options. However, we expect Nifty to face strong resistance at 5,600 , so we would recommend to book partial profits at 5,600 and rest at 5,700.
India VIX (Inverse relationship between Nifty and Indian VIX)
Volatility for 14th March, 2011 close at 24.1 which is 2.5% higher as compared to previous close, after touching an intraday high of 25.2 and low of 22.9.
No comments:
Post a Comment