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Weekly Derivative: Nifty is consolidating in the band of 9550-9700 levels - IndiaNotes.com
Weekly Derivative: Nifty is consolidating in the band of 9550-9700 levels
SMC | Published: 28 Jun, 2017  | Source : IndiaNotes.com

Weekly View of the Market

  

Nifty is consolidating in the band of 9550-9700 levels. But in recent consolidation, we have not seen any major addition and shedding of open interest. However, options players were active throughout consolidation selling both calls and puts. This data indicates more consolidation to continue. There is maximum call open interest concentrations at 9700 calls indicating strong resistance and support around 9500 as put writers are holding put sell position of those levels. Data indicates some more consolidation or minor dip to around 9550 levels. However, if we get any dip we should initiate fresh long position with the support around 9500 levels. The Implied Volatility (IV) of calls was up and closed at 9.78% while that for put options closed at 9.99%. The Nifty VIX for the week closed at 11.21% and is expected to remain sideways. Among Nifty Call options 9700-strike call has the highest open interest of above 80 lakh shares. On put side; 9500-strike put has the highest open interest of over 55 lakh shares in open interest respectively. The PCR for the week closed up at 1.11 which indicates OTM put writing. The current trend is likely to continue towards 9700-9725 after some consolidation.

 

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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.