Weekly View of the Market
Click here to read the full report
Overall derivative data indicate long rollover and most of the Nifty July futures positions had been rolled with the average of 9530 futures. Derivative data indicate bullish scenario to continue. Nifty has multiple strong supports at lower levels. Various supports are 9400, 9450 spot levels. We will see short covering on every dip. In the July option contracts, we are seeing options open interest building up in 9700 calls and 9400 puts, so the probable range for next expiry could be 9400-9700 with positive bias. From option data we have been seeing shifting of range to the upper band. Market Undertone is likely to remain bullish with support of consistent FII buying and short covering. The Implied Volatility (IV) of calls was up and closed at 10.34% while that for put options closed at 10.55%. The Nifty VIX for the week closed at 11.38% and is expected to remain sideways. Overall market's cost-of carry is up on the back of fresh long additions. Among Nifty Call options, the 9700-strike call has the highest open interest of above 35 lakh shares. On put side; 9400-strike-put has the highest open interest of over 50 lakh shares in open interest respectively. The PCR OI for the week closed up at 1.01 from 0.95, which indicates OTM put writing. On the technical front, 9450-9470 spot levels are strong support zone and current trend is likely to continue towards 9700-9750 levels.