By Rajesh Palviya
In Nifty existing series, there has been a Long Addition witnessed with an improve in the cost of 3.12% and improve in OI by 13.61% as of Wednesday wherein there was addition of 16.62 lakh shares in OI, rising from 116.52 lakh to 138.69 lakh shares. Nifty October rollover stands at 9.91% and Nifty Put Call Ratio, a sentiment indicator utilized by traders to gauge the market place sentiment and mood, is at the moment at 1.49 compared to 1.29 of last week, indicating positive bias with caution at greater levels.
India VIX, a market place volatility indicator, generally referred to as the worry gauge, is at the moment trading 16.10% compared to 16.16% last week. Implied Volatility of Nifty ATM alternatives for the existing series is at 15.40% in contrast to 14.52% of last week, indicating low volatile movement on either side in the coming session.
Nifty Put alternatives OI distribution shows that 18,000 has highest OI concentration followed by 17,900 & 17,800 which may possibly act as help for existing expiry and on the Call front 18,200 followed by 18,300 witnessed important OI concentration and may possibly act as resistance for existing expiry.
In weekly alternatives, there was Call writing seen at 18,200 strike followed by 18,300 & 18,400 when on the Put side noticeable activity of writing was witnessed in 18,000 & 17,900 strike costs. Options information recommend an quick trading variety in between 18,300 and 17,900 levels.
Nifty Open Interest Concentration
Nifty Open Interest Change
Bank Nifty outlook
In existing series there has been a Short Covering witnessed in Bank Nifty Fut with a improve in cost of 2.92% and lower in OI by -20.62% as on Wednesday wherein there was unwinding of 4.32 lakh shares in OI, decreasing from 20.95 lakh to 16.63 lakh shares. Bank Nifty October rollover stands at 8.69%, when Bank Nifty Put Call Ratio, a sentiment indicator utilized by traders to gauge the market place sentiment and mood, is at the moment at 1.07 compared to .91 last week, indicating caution at greater levels.
Bank Nifty Put alternatives OI distribution shows that 38,000 has highest OI concentration followed by 37,500 & 38,500 which may possibly act as help for existing expiry and on the Call front 39,500 followed by 38,500 & 38,800 witnessed important OI concentration and may possibly act as resistance.
In weekly alternatives Call writing seen at 38,000,38,500 & 38,700 strike when on the place side it was seen at 38,000 & 37,500 Options information indicated an quick trading variety in between 38,000 and 39,000 levels.
Bank Nifty Open Interest Concentration
Bank Nifty Open Interest Change
Nifty trading method for F&O expiry day
Traders can initiate a Moderately Bullish method with lowered premium outflow & reduce breakeven point referred to as BULL Get in touch with SPREAD for 14th October expiry wherein trader will get one lot of 18,150 get in touch with strike @ 63 and simultaneously sell one lot of 18,300 get in touch with strike @ 9, so that net outflow or maximum loss will be restricted to up to Rs 2,700. If Nifty on expiry day closes above 18,204, the method will get started creating profit, on the other hand as the threat is restricted so is the profit also restricted. The maximum gains will be restricted up to Rs 4,800 only simply because the gains of lengthy 18,150 strike get in touch with will be offset by the sold 18,300 strike get in touch with if Nifty closes above 18,300 on expiry.
(Rajesh Palviya, VP– Research (Head Technical & Derivatives), Axis Securities. Views expressed are the author’s personal.)