It requires an eagle eye to be able to make conclusion from derivatives data and one such data which can be used to arrive at the state of the market is Put Call ratio.
This Put call ratio is a very important ratio as it has a magical figure of 1.2 and as and when this ratio is below this level, it always shows a sign of weakness in the market.
As a call writer one is comfortable as and when the buying interest is lacking in the market and same happened for the May 2011 series and they have got an opportunity to book their premium as profits.
One may see call writers to remain aggressive in the market for June 2011 series and for that one can keep an eye on Nifty level which if trading below 5550 levels, may force the PCR OI to trade below its strong resistance of 1.20 levels.
Hope this derivative market update will help you to make money in the market and do remember to use the daily free share market tips which is provided without any bias or prejudices.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
