Swastika Investmart Limited: Daily Derivative Technical Report 04 April

Market Internals

FII’s were net buyer in cash market with amount of 717cr which is lower than to last month average while the gross buy & sell number is higher which indicates FII’s neither pumping more fresh money neither taking profit at home; they are churning their money to different stocks which shows uptrend is still intact.
DII’s were net seller by the same amount of 717cr in cash market.
FII’s were net seller in index future by amount of 122cr.
There is aggressive positions were built up at dip out of the money options; it might be to eat premium or traders are expecting a huge move in market.
After 22 trading week Emerging market portfolio seen net inflow which is a positive sign that now EM’s are attracting FII’s even after FED tapering.
Rupee is showing signs of weakness where dollar again has come above 60 mark.

Derivative Activity:

Nifty closed at 6736 mark while Nifty April future closed at 6768 mark with premium of 32 points.
Nifty (May) Contract closed at 6827 level with premium of 67 points.
The cost of carry for March month contract placed at 8.26% vs. 9.34%, where nifty April future sheds 0.74% in open interest while total OI is positioned at 18499850.
At the money option implied volatility placed at 13.77% vs. 14.13%.

CALL OPTION HIGHLIGHTS:

On call option front highest open interest has shifted to 6900 mark while 6800 is the immediate resistance.
Aggressive writing was seen at 6900 mark which accumulated 14lacs amount in open interest.

PUT OPTION HIGHLIGHTS:

On put option front highest open interest has shifted to 6600 mark which is immediate support at any correction.
Aggressive short positions were built up at 6400 mark which accumulated 19.5lacs amount in open interest.
IndiaVix up by 4.24% which closed at 22.11 level.
PCR OI placed jumped to 1.05 vs. 0.98mark while PCR volume stands at 1.52 mark.
VIX/PCR ratio stands at 21.05level which is a sign of cautiousness.

Swastika Investmart Limited