Swastika Investmart Limited: Daily Derivative Technical Report 07 April

Market Internals

FII’s were net buyer in cash market with amount of 232cr which is lower than to last month average yet it was 33rd consecutive session of FII’s buying.
DII’s were net seller by the amount of 1125cr in cash market.
FII’s were net seller in index future by amount of 599cr with 8% fall in open interest.
On option front the range for the nifty has extended to 6600-6900.
Technically 6675 is key level to watch out for; if nifty slips below this mark then further 100 points correction can’t be ruled out.
This is a truncated series hence consolidation may be seen yet sector specific movement is likely to continue where next huge movement is likely to take place after exit poll survey result.
Rupee is showing signs of weakness around 60 mark; while dollar index is placed at 80.44 mark.

Derivative Activity:

Nifty closed at 6694 mark while Nifty April future closed at 6744 mark with premium of 50 points.
Nifty (May) Contract closed at 6785 level with premium of 91 points.
The cost of carry for March month contract placed at 15.15% vs. 8.26%, where nifty April future sheds 4.66% in open interest while total OI is positioned at 17779750.
At the money option implied volatility placed at 13.01% vs. 13.77%.

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 6800-6900 mark which accumulated 9lacs total 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.
Some short covering was seen at lower levels.
IndiaVix up by 2.62% which closed at 22.69 level.
PCR OI placed at 1.02 vs. 1.05mark while PCR volume stands at 1.37 mark.
VIX/PCR ratio stands at 22.24 level which is a sign of cautiousness.

Swastika Investmart Limited