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Weekly Derivative: Derivative data indicate bullish scenario to continue - IndiaNotes.com
Weekly Derivative: Derivative data indicate bullish scenario to continue
SMC | Published: 04 Jul, 2017  | Source : IndiaNotes.com

Weekly View of the Market
   
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.

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SMC Research, founded in 1990, is India’s leading share and stock broker, provides a wide range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). Over the years, SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2100+ offices spread across 425 cities/towns in India.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.