-Happy Trading
Friday, October 8, 2010
Wednesday, October 6, 2010
Saturday, October 2, 2010
Friday, October 1, 2010
A strong bullish close for September series and a consolidation
Markets were trading below 6000 levels for major part of the day yesterday and as suggested in the option trade of buying 5900 calls, the upmove came after 2.30pm and saw markets regaining all it lost the previous day to close above 6000 levels exactly at the last resistance of 6030.
Now that we have entered the new series, there might be consolidation and range bound moves between 5900 and 6160 levels for a while. Options data is seeing increase in 6000 puts and unwinding in 6000 calls suggesting that 6000 might act as a strong support level for a while.
At present the implied volatility of both puts and calls is around 20 suggesting range bound moves.
Resistance levels : 6085, 6110, 6160
Support levels : 6014, 5995, 5965
-Happy Trading
Thursday, September 30, 2010
An expiry close to 6000 levels for the September series...
Yesterday markets closed below 6000 levels for the first time in the expiry week.
Options data saw huge unwinding in 6100 puts as well as in 6000 puts with 6000 calls adding a huge open interest. The PCR at 1.19 though not heavily skewed indicates mild bullishness in the expiry day.
Overall in the last week, markets have been hovering around 6000 levels and for today it is expected to trade in a narrow range of 5975 to 6030 levels before settling for the day very close to 6000 levels for the September series.
Resistance levels : 6004, 6030
Support levels : 5981, 5975
Wednesday, September 29, 2010
Market moving in a tight range in the expiry week
Yesterday markets consolidated after testing momentarily sub-6000 levels and closed flat at 6030 levels.
Options data is seeing some unwinding in 6000 and 6100 puts and increase in 6000 and 6100 calls to some extent.
All this points to neutral moves till the close of this series and any move one side will be nullified by an equal move on the other side.
Tuesday, September 28, 2010
Markets hovering above 6000 levels...
Nifty made a new high for the series yesterday and towards the end of the session corrected from the high and closed at 6036 levels.
As indicated the put volatility was lesser when compared to calls which pulled Nifty lower yesterday. Currently there is significant increase in OI in 6000 calls and puts as well as in 6100 call and 5900 put, all indicating an expiry close to 6000 levels at this stage.
Resistance levels : 6042, 6065
Support levels : 6014, 5981
Monday, September 27, 2010
Weekly Update: Entering the expiry zone...An above 6000 close for the series
What the markets did last week ?
Last week the bull run continued and markets made a high of 6037 levels before settling at 6018 for the week, a 2.27% gain over the previous week.
It has been a continuous four week bull run and markets have entered the expiry week on a very strong note.
What does the options data indicate ?
The PCR as on friday was 1.38 indicating further bullish move. Currently option data is seeing an increase in OI in 6100 and 6000 puts with increase seen in 6100 calls.
The PCR as on friday was 1.38 indicating further bullish move. Currently option data is seeing an increase in OI in 6100 and 6000 puts with increase seen in 6100 calls.
What can be expected this week ?
Overall the implied volatility of puts have reduced and are trading lesser when compared to the near strike calls. This points to the fact that markets could reverse from the high levels and move towards 6000 levels sooner and as of now an above 6000 close at around 6014 levels is seen for this expiry this thursday.
Weekly Resistance levels : 6042, 6065, 6102
Weekly Support levels : 6014, 5981, 5946
-Happy Trading
Friday, September 24, 2010
Tight range and hovering around 6000 levels...
Yesterday markets scaled 6000 levels again before correcting and bouncing from the last support level of 5931 mentioned and closing for the day at 5960.
Options data saw slight increase in near strike calls and puts, with 5900 moving to an open interest of 95 lakhs.
Overall the same view is maintained as to markets will remain within the tight range and would go in for a closer to 6000 expiry for this series.
Resistance levels : 5981, 6014
Support levels : 5946, 5931
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