*Quantitative data set up and inter market relationship*
*Greed and Fear Indicator:* _Volatility spiked above 24 levels (VIX CMP – 24.01)_
India VIX was up by 16.32% from 20.64 to 24.01 levels on week on week basis. Volatility spiked in this week which is causing some pause in the positive momentum and needs to cool down below 20 zones to again get the bullish stance.
*CBOE VIX:* CBOE VIX was up by 12.89% from 21.56 to 24.34 levels. Volatility rose throughout the week and needs to cool off.
*Fund Flow:* _FIIs continue infusing money_
FIIs were net buyers the entire week and bought net 7637 crores worth shares while DIIs on the other hand had an offsetting position and sold worth 7445 crores during the week. The Long Short Ratio ranged from 67.41% to 78.73% in the week to close the week at its lower band. On the FIIs derivatives front, there was long liquidation in index futures and short built up in stock futures.
*Safe Haven:* _Gold below 49k levels as a result of rising US bond yields (Gold, MCX CMP – 48745)_
Gold was down by 0.59% on weekly scale and saw a range bound week. The yellow metal has marked its second consecutive week of loss and continues to trade below its 100 DMA on daily frame. Price fell as the week concluded on Friday as a result of the increasing US bond yields and shift in asset class as investors feel the opportunity cost of holding the precious metal. After breaking out earlier in the month, gold prices have reversed course and are poised to test support.
Among other precious metals, silver was marginally up by 0.67% this week.
*Option Data:* _Nifty wider trading range between 14000 to 14800 (Nifty CMP – 14433, Bank Nifty CMP – 32246)_
Nifty futures closed the week with marginal gains of 0.61% with reduction in futures Open Interest (OI) by 1.56% on a weekly basis which indicates shorts are being covered. During the week, Put Call Ratio (PCR) based on Open Interest of Nifty moved in between 1.19 to 1.80 levels and closed the week at its lower band. On option front, Maximum Put OI is at 14000 followed by 13500 strike while maximum Call OI is at 15000 followed by 14500 strike. Call writing is seen at 14500 then 14600 strike while Put writing is seen at 13500 and unwinding at 13700 strike. Option data suggests a wider trading range in between 14000 to 14800 zones while an immediate trading range in between 14300 to 14600 zones.
Bank Nifty futures closed the week with gains of 0.44% with reduction in Open interest by 11.29% on a weekly basis which suggests shorts are being covered in the banking index. Put Call Ratio based on Open Interest of Bank Nifty remained in between 0.87 to 1.04 and it closed near its lower band. IV of Banking index increased to 26.6 levels as the week concluded. For weekly Bank Nifty, Maximum Put OI is at 31000, while maximum Call OI is at 35500. We have seen Call writing in 35500 and 32500 while Put writing is witnessed at 30000 with unwinding at 29000 strike.
The Nifty Financial Services index which was made available for trading in the F&O segment earlier this week reflected good OI built up in the week by 28.05% (Due to lower base) with a marginal decrease in futures price by 1.04%. OI inventory just started so after few weeks we will get proper sense about trading position in this new index.
*India Rupee:* _Rupee snapped its three day gains as a result of selling pressure in the Indian equity (USD/INR CMP – 73.12)_
The USD/INR pair was down by 0.28% and after a positive opening fell down throughout the week. It marginally recovered as the week concluded as selling pressure could be seen in the Indian market which weighed down Rupee. The rising US bond yields acted as a catalyst.
*Crude Oil:* _Boosted sentiments sank as the week concluded but broader trend remains intact (Crude Oil WTI, MCX CMP – 3830)_#NIFTYBANK #NIFTY50