This month May is so far a tricky season as the entire nation waits for the biggest news and the market gets compressed. The upcoming biggest event on May 16 makes the Option players staying away from naked OTM writing of calls/puts.
Nifty on the hourly charts is in sell mode since 29th April 2014 and currently the resistance zone comes around 6766. However on contrary Banknifty still maintaining the positional buy mode since 24th April with support coming around 12794. Reverse your position if the support/resistance breaks on the hourly charts.
Since the Biggest event in place everyone in the market is expecting some sort of bigger numbers in volatility index. But in reality VIX still hovers around 31-34 zone. And the hourly support comes around 30.8462. Only a close below on hourly charts will make India VIX to turn to negative more on short term.
Nifty Open Interest – May Option Series
The Open interest picture shows minor amount of put writing at 7000CE with highest open interest across the strike prices. As of now no major writing in put side seen.