Friday, August 13, 2010

Range bound market

Options data depicts maximum Call OI at 5600 strike (10.08 million shares) while
on the Put side maximum OI stands at 5300 strike (11.9 million shares). On the
Call side, the Nifty 5600 and 5300 Call added about 1,300 lots. On the Put side,
the Nifty 5200 and 5300 Put added about 11,500 lots. Unwinding was seen to the
extent of about 5000 lots in Nifty 5400 and 5500 Call

Considering decent PCR-OI base at the 5400 strike and substantial buying by FIIs
in the cash segment for the last few days expect Nifty to take support on dips

The Nifty is likely to trade in the range of 5380-5450. The trading strategy would
be to create short positions if the Nifty resists at around 5432 levels for targets of 5415 and 5402. On the other hand, one can also create long positions if the Nifty
takes support at around 5400 levels