Nifty active futures ended at 5429.60, at a strong premium of over 14 points on Monday. India VIX, which measures the immediate expected volatility, climbed to close at 18.36 on Monday, after touching an intra-day low of 16.60. Nifty PCR OI stands at 1.43.
The option data for active series show the highest OI build-up in 5400 Puts and 5600 Calls, indicating the new trading range for the Nifty. During the past expiry, we observed that the Nifty did not see a spurt, after it breached the 5540 level on short-covering.
Also, Nifty rollovers were at a healthy 76%, hinting at the ‘shorts’ remaining intact. Hence, we enter the September expiry with a cautious view, with bears over-powering bulls.
The market can take a direction if 2Q GDP numbers, to be reported on Monday, don’t come in line with expectations of around 8.8% YoY (Bloomberg estimates) compared with 8.6% YoY for the prior quarter.
Markets erase morning gains, trade flat
Markets have erased gains and is in the red this morning. The Sensex, after touching a high of 20,289, is now down 17 points at 20,207. Nifty is down 13 points at 6,143.
Gains in China new home prices signal growth
Bloomberg reported that China’s new home prices rose last month in 68 out of 70 cities tracked by the government, indicating Premier Li Keqiang will need to maintain efforts to cool the property mark