The Fear index plunged 4%: Angel Broking

Derivatives Wrap-up by Mrs. Sneha Seth (Derivatives Analyst, Angel Broking):

"Post yesterday's positive closing, we once again kick started the day on a cheerful note. As the day progressed, follow-up buying was seen to extend the upmove beyond 11800 mark. In the midst, we saw some consolidation but fresh buying in the final hour led closing with the gains of 1.24%. The banking index continued its outperformance and rallied another 3% today, which is indeed remarkable. Other sectors like Auto, Metals and Pharma also supported the benchmark index.

In F&O space, we saw addition of fresh long positions in both the indices. Decent amount of longs from last series are also intact in Nifty. Looking at today's move beyond 11800 mark, the call writer of 11700-11950 lost hopes and hence they preferred covering their positions. Meanwhile, decent writing was seen in 11500-11800 put options. Now, the maximum open interest concentration for the current weekly series is placed at 12000 call and 11500 put options. The Volatility index plunged 4%, which is a sign of strength. Considering the recent development in derivatives segment, we continue with our optimistic stance on market and soon expect extension of recent rally beyond 12000 mark. Hence, any intraday decline shall be an opportunity to re-enter."

Source : Equity Bulls

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