Weekly View of the Market
Overall derivative data indicate long rollover and most of the Nifty Sep futures positions have been rolled with the average of 9850 futures. Derivative data indicate bullish scenario to continue. Nifty has multiple strong supports at lower levels. Various supports are 9800 & 9850 spot levels. We may see short covering in every dip. In the Sep option contracts, we are seeing options open interest building up in 10000 calls and 9800, 9700 puts, so the probable range for next week could be 9800-10000 with positive bias. From the option data, we have been seeing shifting of range to the upper band. Market Undertone is likely to remain bullish. The Implied Volatility (IV) of calls was up and closed at 11.23% while that for put options closed at 10.55%. The Nifty VIX for the week closed at 13.01% 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 10000-strike call has the highest open interest of above 40 lakh shares. On put side, 9700-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 1.13, which indicates OTM put writing. On the technical front, 985 -9900 spot levels are strong support zone and current trend is likely to continue towards 10100.
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