INSUBCONTINENT EXCLUSIVE:
Even as global equity markets led by the US remain highly volatile, traders here are busy staging a Santa rally, and the Nifty open interest
put-call ratio (PCR) is testimony to that.
Bulls are busy selling index put options, especially after the state assembly elections outcome
on December 11 and the US Fed rate hike decision on Wednesday.
The Nifty PCR was 1.47 on Thursday against 1.45 a day earlier
Coupled with a 2.2 per cent drop in fear gauge India VIX to 14.33 and a fall in the 10-year government bond yield at 7.27 per cent this
underscores the growing optimism in the market.
Options expiring on December 27 show key supports at 10,800, followed by 10,500, while a
major resistance kicks in at 11,000
If this is broken decisively Nifty could test 11,200 in the current series
10,800-10,850 for a target of 11,000-11,100.
The Nifty recovered 72 points from an intra-day low of 10,880.05 to close at 10,951.70 on
Thursday even as much of Asia and Europe were in the red at press time.
