Weekly View of the Market
Overall derivative data indicates long rollover and most of the Nifty July futures positions had been rolled with the average of 9530-9545 futures. Derivative data indicates bullish scenario to continue. Nifty has multiple strong supports at lower levels around 9600; 9550 and 9500 spot levels. We can see short covering on every dip as just after start of July series we have been seeing put writers aggressively selling 9500 and 9600 puts, which indicates upside to continue. Put OI concentration has shifted towards 9500 from 9400 after start of July series in recent trading sessions. In the July option contracts we are seeing options open interest building up in 9700 calls followed by 9800 calls and 9500 puts, which means that for this expiry nifty will be well supported around 9500 levels. 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 9.70% while that for put options closed at 10.03%. The Nifty VIX for the week closed at 10.98%. On the technical front, 9600-9550 spot levels is strong support zone and current trend is likely to continue towards 9700-9750. The PCR OI for the week closed up at 1.33 from1.02, which indicates OTM put writing.
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