By Rajesh Palviya
In the present series in Nifty, there has been a Long Build Up witnessed with an raise in the value of 2.70% and an raise in OI by 14.90% as of Wednesday wherein there was the addition of 18.47 lakh shares in OI, rising from 123.97 lakh to 142.44 lakh shares. Nifty September rollover stands at 7% when sentiment indicator employed by traders to gauge the industry sentiment and mood, Nifty Put Call ratio, is at the moment at 1.20 compared to 1.23 of last week, indicating positive bias.
India Vix, a industry volatility indicator typically named the worry gauge, is at the moment trading 14.19% compared to 13.54% of last week. Implied Volatility of Nifty ATM selections for the present series is at 13.44% in contrast to 12.35% of last week, indicating marginal volatile movement on either side in the coming session.
Nifty Put selections OI distribution shows that 17,000 has highest OI concentration followed by 16,900 and 16,800 which may possibly act as help for present expiry and on the Call front 17,200 followed by 17,300 witnessed substantial OI concentration and may possibly act as resistance for present expiry.
In weekly selections there was Call writing seen at 17,300 strike followed by 17,200 and 17,one hundred when on the Put side noticeable activity of writing was witnessed in 17,000 and 16,900 strike costs. Options information recommend an quick trading variety involving 17,200 and 16,900 levels.
Nifty OI Concentration
Nifty Option OI Change
Bank Nifty Outlook
In present series there has been a Long Build Up witnessed in Bank Nifty Futures with a raise in value of 2.69% and raise in OI by 26.94% as of Wednesday wherein there was addition of 3.94 lakh shares in OI, rising from 14.63 lakh to 18.57 lakh. Bank Nifty September rollover stands at 5.14% when Bank Nifty Put Call Ratio, a sentiment indicator employed by traders to gauge the industry sentiment and mood, is at the moment at .99 compared to .92 of last week indicating positive bias with caution.
Bank Nifty Put selections OI distribution shows that 36,500 has highest OI concentration followed by 36,000 & 35,500 which may possibly act as help for present expiry and on the Call front 36,500 followed by 37,000 & 37,500 witnessed substantial OI concentration and may possibly act as resistance.
In weekly selections, Call writing seen at 37,000,37,500 & 36,800 strike when on the place side it was seen at 36,500 & 36,000.Options information indicated an quick trading variety involving 36,000 and 37,000 levels.
Bank Nifty OI Concentration
Bank Nifty Option OI Change
Nifty trading approach for F&O expiry day
Traders can initiate a Moderately Bullish approach with lowered premium outflow & reduce breakeven point named BULL Contact SPREAD for 2nd September expiry wherein trader will invest in one lot of 17,one hundred contact strike @ 35.55 and simultaneously sell one lot of 17,200 contact strike @ 9.95, so that net outflow or maximum loss will be restricted to up to Rs 1,280 (26 points). Nifty on expiry if closes above 17,126 the approach will start out creating profit, nonetheless as the danger is restricted so is the profit also restricted. The maximum gains will be restricted up to Rs 3,720 (74 POINTS) only due to the fact the gains of lengthy 17,one hundred strike contact will be offset by the sold 17,200 strike contact if Nifty closes above 17,200 on expiry.
(Rajesh Palviya is Vice President– Research (Head Technical & Derivatives) at Axis Securities Limited. The views expressed are the author’s personal. Please seek advice from your monetary advisor prior to investing.)