Cash turnover today also was at very high for nifty stocks i.e close to 11000
crores. But this turnover is different from turnover observed on Friday. Friday
was strong upmove, and today would be classified as failed upmove as market has
tried to make upmove but not sustained at higher levels.
Futures stock turnover is also significantly high since last 2 trading session.
Same logic applies here also. Although some stocks were trading at Discount to
cash market But Nifty futures gained premium resulting in increased cost of carry
significantly, indicating Risk reward in favour of shorters.
Puts and calls at money seen fairly priced, But Cost of carry increased
significantly also annualized volatility (Standard deviation for valuing options)
is also increased.
Value Locked in calls is higher than value locked in puts.(i.e) Strike Price X
Quantity) Now No of contracts of Puts is Higher than No of calls contracts. Means
Puts trading stikes are at lower levels than calls trading strikes i.e calls
strikes traded were higher. Now on analyzing higher calls it is observed that
these are trading at Discounts and Puts are trading at significant premiums.
No aggressive Buying seen in index futures by FIIs also shorts build in stocks.
Lot more statistics available indicating markets peaking out and correction is