Nifty rollovers at 68% - SMC

Nifty rollovers were at 68.00% in line with the 3 month average of 70.00%. Market wide rollover was at 80.60% in line with the 3M average of 80.50%.

India VIX dipped further by 4.5% and settled at 14.88. The market expects a rise in volatility in the days to come. If the Index slips below the 6250 mark; it could gradually slide to 6100 levels. Conversely, a sustained move beyond 6300 levels should see Nifty climbing to 6500 levels.

Technically, the Index continues to trade above all its moving averages, of 200-day and 100-day EMAs, indicating a bullish scenario. On the contrary, sustaining 6200 levels is extremely crucial for a continued uptrend. Jan contract ended the week at a premium of 56.00 points.

The put-call ratio of open interest closed at 0.95. The highest concentration of call option is at 6500-strike call option, which has 39 lakh shares. Among the put options, the highest open interest is at the 6200 strike, with an open interest of above 32 lakh shares. The options build-up in the 6500 strike indicates a stiff resistance in the medium term. The Implied Volatility (IV) of call options was 14.47% on Friday; while average IV of put options was 15.50%. The index is likely to trade in the range of 6250-6450 next week.

Source : Equity Bulls

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