May has been an extremely
volatile and a big month for the markets and hence it will be keenly watched by
option players to see where it tends to close from here. With two days to go
for expiry we thought to bring up some interesting statics on the data for this
month.
First a look at the
options build up for May. As the graph suggests that the maximum buildup of options
is in the 7400 & 7500 range for CE.
This indicates as serious resistance and more or less confirms that markets
wont be pulling back above those levels in the next few days.
This is inline with our
other analysis last week where we had
clearly marked that 7550 would be a big hurdle for the markets and in the last
two sessions markets have exactly retraced from there.
On the downside option
build up support emerges at much wider band of 7000-7200 levels and hence not
much conclusion can be derived for a definitive levels.
Now also a look at the
INDIAVIX Charts. INDIAVIX is currently in the consolidation band and faces
serious hurdle at 25 levels and support at 13-15 zones. This would largely mean
that volatility may further consolidate and hence markets may continue to
remain in the wide band of 7200-7400 for a while.
So what would be the
option trades for this expiry, we would say look for a pullback options opportunity
from 7200 levels on the downside and 7400 on the upside.
We will also post an
updated analysis on the morning of expiry day as well on the facebook page. Stay
tuned
INDIAVIX combined with the
option OI can potentially offer some great trade set ups in the markets. For both
writers and option buyers.
 |
| NIFTY Options OI Data-27- May-2014
This is inline with our
other analysis last week where we had
clearly marked that 7550 would be a big hurdle for the markets and in the last
two sessions markets have exactly retraced from there.
On the downside option
build up support emerges at much wider band of 7000-7200 levels and hence not
much conclusion can be derived for a definitive levels.
Now also a look at the
INDIAVIX Charts. INDIAVIX is currently in the consolidation band and faces
serious hurdle at 25 levels and support at 13-15 zones. This would largely mean
that volatility may further consolidate and hence markets may continue to
remain in the wide band of 7200-7400 for a while.
So what would be the
option trades for this expiry, we would say look for a pullback options opportunity
from 7200 levels on the downside and 7400 on the upside.
We will also post an
updated analysis on the morning of expiry day as well on the facebook page. Stay
tuned
INDIAVIX combined with the
option OI can potentially offer some great trade set ups in the markets. For both
writers and option buyers.
|
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