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Monday , 20 August 2018
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Print all In new window INDIAVIX surged 12% on account of geo-political tension

“It was indeed a bad start for the week, as the benchmark index (Nifty) plunged more than 100 points during the day after North Korea conducted its sixth and most powerful nuclear test on Sunday. Eventually, we saw some recovery during the latter half to conclude today’s session ted above 9900 mark.
 
On derivatives front, Nifty added some fresh shorts as OI increased by 3.10%. At the same time, open interest activity in BankNifty remains subdued.  Post lows seen on Friday’s session; INDIAVIX surged 12.22% today due to uncertainty in global environment. PCR-OI declined from 1.38 to 1.30, which is mainly due to unwinding in put options along with fresh build-up in call strikes. 9900-10200 strikes of call option added good amount of positions. On the flip side, 9700 strike added some fresh positions; followed by unwinding in 9900 and 10000 put options. Maximum concentration of open interest remains intact in 10000 call and 9700 put options.
 
September series began with low rollovers, both in terms of percentage as well as open interest. In entire August series, FIIs formed huge amount of short positions in index futures and also rolled decent portion of it. At the same time, they exited 35% of their longs formed in the preliminary stage of the rally seen this year. At present, FIIs index future ‘Long Short Ratio’ is 71%, which is the lowest during start of any new series for this calendar year. All these evidences suggest limited steam left in the market and any unfavourable trigger could result into yet another round of profit booking.”

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