Weekly Derivative: Call writers are trapped | bulls may again once again take control in coming sessions | Next resistance is placed around 10100 level | Indianotes.com


Weekly View of the Market

    

Rollover data to Oct series indicates long rollover with major resistance at 10000 levels for Nifty futures. However, in Friday’s session we have seen that nifty managed to close above the 10000 mark (future level) which clearly indicates that call writers are trapped. This could trigger further short covering and bulls may again once again take control in coming sessions. The further range of 9800-10100 levels will remain crucial as indicated by option open interest concentration. As far we manage to hold above 9800-9850 levels, the bias should remain as buy on dips. Overall data has turned slightly positive and further up move can be seen towards 10150 levels. The options open interest concentration shifted from 9700 to 9800 strike puts with the highest open interest of above 54 lakh shares; The put-call ratio of open interest closed up at 1.01 from 0.94 levels indicating put writing. The implied volatility (IV) of call options closed at 10.60%, while the average IV of put options closed at 11.25%. The VIX index closed at 11.71% from 12.49%. Next resistance is placed around 10100 level whereas support can be seen around 9900 and 9800.

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