Swastika Investmart Limited: Daily Derivative Technical Report 16 April

Market Internals

FII’s were net seller by amount of 21cr yet the gross sell numbers were not jumped up while gross buy number has come down amid global market volatility
DII’s were net seller with amount of 278cr in cash market.
Profit booking was seen in index future by FII’s where they sell 1028cr in index future; ahead of expiry huge sell number in index future shows that upside is limited for this expiry.
On option front 6700 is still a strong support for nifty if nifty manages to hold this level then a consolidation is likely to seen in the range of 6700-6800 for this series.
VIX/PCR ratio is above 31 which is huge reason of worry among the traders.
Global markets are moreover very volatile where US market recovered to day’s high after a sharp fall.
Rupee is weakening from 60mark while dollar index placed at 79.82 mark.

Derivative Activity:

Nifty closed at 6733 mark while Nifty April future closed at 6754 mark with premium of 21 points.
Nifty (May) Contract closed at 6800 level with premium of 67 points.
The cost of carry for April month contract placed at 14.23% vs. 16.16%%, where nifty April future sheds 4.75% in open interest while total OI is positioned at 17995950.
At the money option implied volatility placed at 13.38% vs. 12.33%.

CALL OPTION HIGHLIGHTS:

On call option front highest open interest has shifted to 6800 mark which will act as a resistance in upside.
Aggressive writing was taken place at 6800 mark which accumulated 9.4lacs amount in open interest.

PUT OPTION HIGHLIGHTS:

On put option front highest open interest is positioned at 6700 mark which will act as immediate support for nifty.
Short covering was taken place at 6800-6500 levels.
IndiaVix jumped by 9.22% which closed at 31.87 level.
PCR OI placed at 1.02 vs. 1.1 mark while PCR volume stands at 1.13 mark.
VIX/PCR ratio stands at 31.5 level which shows fear among the traders.

Swastika Investmart Limited