Nifty March Futures Premium decreases - Karvy

Nifty March futures premium decreased to 24.50 points from 30.80 points. Futures shed 1 lac shares in OI.

Nifty April futures premium decreased to 59.05 points from 64.65 points. Futures added 1 lac shares in OI.

Nifty historical volatility fell to 16.65% from 16.81%.

Nifty put options shed 6 lac shares in open interest, while Nifty call options added 8 lac shares.

Nifty put options implied volatility IV increased to 16.27% from 15.07%, while Nifty call options' IV decreased to 18.33% from 19.58%.

Nifty VIX rose to 15.16% from 14.66%.

The US markets closed on a positive note in Friday's trade, while Asian markets are currently trading deep in the red. Hence, Nifty is expected to open gap down as indicated by SGX Nifty. Trade short in the Nifty below 5830 level or else from 5850 level with a stop loss placed at 5870 for targets of 5800 and 5780 levels. Alternatively, trade long in the Nifty if it sustains above 5870 targeting resistance levels.

The Bank Nifty ended on a negative note, losing 1.70% in Friday's trade. On the F&O front, the Index shed 8.43% in open interest on the back of surging cost-of-carry from 15.11% to 14.92%. The index has become very volatile ion the range of 11700-12200 in the last few trading sessions. Going forward, the index is likely to display the same behavior ahead of tomorrow's RBI Credit Policy. For the day, trade short on the Index below 11700 for targets of 11600 and 11500 levels.

Source : Equity Bulls

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