Dear Members,
Again a day of huge selloff. But I have noticed one interesting thing that in the last few minutes nifty future was trading at almost 30 points premium in such a selloff day. Nifty 4300 call was trading @90 & 4300 put @105 ???? Only 15 rs difference whereas 4300 call is behind 50 Rs and for put there is already 50 Rs in hand. This difference should be atleast 50 rs. i.e. 4300 put fair value should be around 140 Rs at close (4200 call LTP=143 and there is also 50 Rs in hand as 4300 put). Open interest has also changed dramatically in the last hour ended to 125% for the call and only 14% for the put.
It means that put writers were agreed to write even at lower prices as they are sure that nifty will not break todays level of 4250 in this series and on the other hand the call writers are also a little confuse that nifty will go down further.
I think this is a clear indication that we will witness a big bounce in coming 1-3 days. Your views friends????
regards
Abhi
Again a day of huge selloff. But I have noticed one interesting thing that in the last few minutes nifty future was trading at almost 30 points premium in such a selloff day. Nifty 4300 call was trading @90 & 4300 put @105 ???? Only 15 rs difference whereas 4300 call is behind 50 Rs and for put there is already 50 Rs in hand. This difference should be atleast 50 rs. i.e. 4300 put fair value should be around 140 Rs at close (4200 call LTP=143 and there is also 50 Rs in hand as 4300 put). Open interest has also changed dramatically in the last hour ended to 125% for the call and only 14% for the put.
It means that put writers were agreed to write even at lower prices as they are sure that nifty will not break todays level of 4250 in this series and on the other hand the call writers are also a little confuse that nifty will go down further.
I think this is a clear indication that we will witness a big bounce in coming 1-3 days. Your views friends????
regards
Abhi
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