Nifty surpasses 6000 - ICICIdirect

The Nifty staged a good breakout after remaining range bound within 100 points in the last week. The index surpassed 6000 and closed 1.8% higher at 6016. Index stocks like ONGC, PNB, Bhel and BPCL clocked gains of over 6% each.

The 6000 Call writers, who were already jittery since the breakout above 5800, started rolling over their positions to 6200 Call strike. Put writers, who were sceptical to write the ATM strikes in the beginning of the series, started forming positions at 5900 and 6000 Put strikes. The highest Put base is still at 5800 while the Call base is at 6200 levels.

India VIX, just like its counterpart in the US, started declining and gave second lowest closing after October 22 at 13.40 levels. Long vega formed before the fiscal cliff started witnessing closure resulting in range bound markets.

Source : Equity Bulls

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