Volatility Rules Over Market As Nifty Nears 7800 Level

In today's trading session the Nifty opened in the green & cautiously traded at a higher level in the morning session, but after mid session the Nifty slipped because of the confusion on what the Fed has done and is likely to do with regards to interest rates. Finally, the Nifty settled with 165.10 points negative at 7812 level.

The market breadth for the Nifty has turned from neutral to negative in today's trading session, as the advance decline ratio ended on the negative side. Only one stock has been closed in the green mark whereas, 49 stocks closed in red.

Top Nifty Gainers: WIPRO was top gainer gain with 0.30% .

Top 5 Nifty Losers: HINDALCO was top looser with loss of 6.66% followed by,VEDL, COALINDIA, TATAMOTORS, and YESBANK.

In today’s trading session all sector has closed with red mark and CNX METAL sector was top loser, lose with 4.23%.

The Asian markets were quoted with mixed; China's Shanghai Composite was up by 0.92%, Hong Kong's Hang-Seng down by 0.08% , while Japan's Nikkei was down by 1.96%.

European market also traded in red,London's FTSE 100 index was 2.2% lower, the German DAX fell over 2.7% and the French CAC was down by 3%.

Derivative Analysis

The Nifty September futures open interest has increased by 7.03%. Bank Nifty September futures open interest has decline by 3.22%. Nifty market closed at 7,812 levels & Bank Nifty closed at 17,031.15 levels.

The Nifty September future closed at a discount of 33 point.
 
The October series closed at a premium of 2.7 points.

The Implied Volatility of at the money options has increases by 11.92%.  

Nifty PCR-OI has sustain at 1.05 levels.

Interpretation: On the basis of above data,its observed that 7800 may act as strong Support & 8000 may act as strong resistance for Nifty Index. Further moment for the index would be on the positive side.