Volatility Index rose by 3.58% - Microsec

Nifty opened lower but found strong support in the 5680-5700 zone. It recovered on very strong volumes and closed near the intra-day high of 5752.

In seven trading sessions, Nifty has lost 6.8% and a pull back rally up to 5850 is likely in the short term. However, a breach of 5670 could take the index lower up to 5400 in the medium term.

Buying was seen in Nifty deep out-of-money Put options of strikes 5000 to 5400 ahead of the FOMC meet.

Nifty Put Call ratio (OI) rose marginally to 1.01 with the total open interest in Call options at 1,094,561 lots and that in Put options at 1,110,594 lots.

Reliance Communications, Hindustan Unilever, Aditya Birla Nuvo, Bank of India, Wipro Ltd, BHEL, Tata Steel, Sterlite Industries and Coal India appear strong while Infosys Technologies, Adani Power and Tata Chemicals are likely to remain weak.

Volatility Index rose by 3.58% from 18.12 to 18.77.

Source : Equity Bulls

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