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Weekly Derivative: Sector rotation is likely to continue further

SMC | 10 Jan, 2017  | Follow Author | Add to my Favourites 
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Weekly View of the Market

 

The Market undertone remained bullish with support of positive international market and FII buying in the previous week. Nifty is trading near 8250 level and all the major sectors like Banks, Metals, and Auto & FMCG are supporting the market trend. Sector rotation is likely to continue further. The January series started with long rollover. The Implied Volatility (IV) of calls was down and closed at 12.82% while that for put options closed at 13.11%. The Nifty VIX for the week closed at 15.05% and is expected to remain sideways. Overall market's cost-of-carry is up on the back of fresh long additions. Among Nifty Call options, the 8400-strike call has the highest open interest of 45 lakh shares followed by the 8300-strike call which have OI of over 40 lakh shares. On put side, 8000-strike put has the highest open interest of over 62 lakh shares in open interest respectively. The PCR OI for the week closed up at 1.22 from 1.17, which indicates OTM put writing. On the technical front, 8100-8150 is strong support zone for Nifty and current trend is likely to continue upward towards 8350-8400.

 


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About SMC
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.



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