Nifty99000 100%

Sensex99000 100%


India VIX Oscillating At 5-mth Resistance Level

Author: Dhirender Singh Bisht/Wednesday, February 3, 2021/Categories: Exclusive

Rate this article:
India VIX Oscillating At 5-mth Resistance Level

After the Union Budget-2021, the market shows a V shape recovery led by banking stocks and touched all-time high. Now, the Index is trading above its rollover level. The highest Call concentration is at 15,000 and Put at 14,500 strike in current week expiry. Call and Put writers are now active in OTM (Out Of The Money) strikes, whereas Put writers are more aggressive than Call writers. In monthly contracts, highest Call writers are at 15,000 strike, whereas in Puts, it’s at 14,000 strike. The Implied Volatility (IV) gap between At The Money (ATM) Call and At The Money (ATM) Put is around 4-5 per cent, which is a slightly higher than the normal scenario for the derivatives market. The gap between the Call Implied volatility and Put Implied Volatility same as compared to the last week. The Call IV is little expensive compared to Put IV, which will attract the Call option writers. India VIX touched its 5-month resistance of 26 and fell back. India VIX is trading in a range of 26-18 for a long time and unless and until it doesn’t breach this level, we can expect the market to trade in a bull phase with minor jerks. The Nifty option max pain for current week and next week is at 14,500 whereas the Bank Nifty option max pain for the same expires is at 33,500 strike. The indices are trading above its max pain level, which shows now bulls are having a grip over bears. Weekly straddle is trading around 201 (which is somehow the highest in the last three month) that implies the option writers are comfortable at +/-201 points movement in coming sessions. The Index is likely to trade in the range of 15,000 on upside in upcoming sessions as it is also a psychological level whereas the support is placed around 14,300 points. Every dip in the market can be considered as a buying opportunity and stock-specific movement can be expected.

The writer is a senior research analyst (derivatives) at SMC Global Securities Ltd


Number of views (283)/Comments (0)

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free