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Weekly Derivative: The May series started with long rollover - IndiaNotes.com
Weekly Derivative: The May series started with long rollover
SMC | Published: 16 May, 2017  | Source : IndiaNotes.com

Weekly View of the Market

  

After sideways consolidation, Nifty has given breakout and is now trading around 9400 levels. The Undertone remained bullish with support of positive international market and FII buying in the previous week. Nifty is trading near 9400 level and all the major sectors like Banks, Auto & FMCG are supporting the market trend. Sector rotation is likely to continue further. The May series started with long rollover. The Implied Volatility (IV) of calls was down and closed at 10.51% while put options closed at 10.77%. The Nifty VIX for the week closed at 10.84% and is expected to remain sideways. Among Nifty Call options, the 9500-strike call has the highest open interest of 72 lakh shares on put side; 9300- strike put has the highest open interest of over 75 lakh shares in open interest respectively. Put writers sold heavily sold Index puts in the expiry week and still holding put sold positions. It was also observed that put sellers were also active in the previous week. Post expiry also no major short build-up seen up by FIIs, however they have been liquidating some on index long carry forward position but seen buying in stocks futures. The PCR OI for the week closed up at 1.27 from 1.03 which indicates OTM put writing. On the technical front 9300-9350 is strong support zone for Nifty and current trend is likely to continue upward towards 9500-9550.

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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.