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Weekly Derivative: Derivative data indicates bullish scenario to continue -
Weekly Derivative: Derivative data indicates bullish scenario to continue
SMC | Published: 23 Oct, 2017  | Source :

Weekly View of the Market
The market undertone remained bullish with support of consistent FIIs buying and short covering. Derivative data indicates bullish scenario to continue. Option writers were active in recent rally. The Implied Volatility (IV) of calls was down and closed at 9.76% while that for put options closed at 10.32%. The Nifty VIX for the week moved up at 11.61% from 11.04. The PCR OI for the week closed up at 1.78 from 1.17, which indicates OTM put writing in 10000, 10100, 10200 puts and unwinding in calls. Still there is a lots of outstanding short position in Nifty and Index calls. We can expect another round of short covering in the expiry week. As per current derivative data Nifty may move towards 10300 levels. Nifty has multiple strong supports at lower levels. Various supports are 10050,10100 & 10150 spot levels. We will see short covering on every dips. Nifty moving up, with decent addition in open interest indicates strength in the current trend. October series derivative data is stronger than September series as we have been continuously seeing open interest addition post expiry. On the technical front 10150- 10170 spot levels is strong support zone and current trend is likely to continue towards 10275-10300 in the expiry week.

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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 accept any liability whatsoever arising from the use of any of the above contents.