By Rajesh Palviya
In the Nifty existing series, a Long Build up has been witnessed with marginal raise in price tag of .23% and raise in OI by 2.14% as on Wednesday wherein there was addition of 1.99Lac shares in OI, rising from 93.23lac to 95.22Lac shares. Nifty July rollover stands at 8.48% as on Wednesday. Nifty Put Call Ratio, a sentiment indicator applied by traders to gauge the market place sentiment and mood, is at present at 1.23 compared to 1.06 of last week, indicating positive bias.
India VIX, a market place volatility indicator frequently known as the worry gauge, is at present trading 12.59% compared to 13.56% of last week. Implied Volatility of Nifty ATM choices for the existing series is at 12.35% in contrast to 12.29% of last week, indicating low volatile movement on either side in the coming session.
Nifty Put choices OI distribution shows that 15,800 has highest OI concentration followed by 15,700 which may well act as help for existing expiry and on the Call front 16,000 followed by 16,one hundred & 15,900 witnessed considerable OI concentration and may well act as resistance for existing expiry.
In weekly choices there was Call writing seen at 15,900 strike followed by 16,000 even though on the Put side noticeable activity of writing was witnessed in 15,800 & 15,700 strike costs. Options information recommend an quick trading variety involving 15,700 and 16,000 levels.
Nifty OI Concentration
Nifty OI Change
Bank Nifty Outlook
In the existing series there has been a Long Build Up witnessed in Bank Nifty Futures with an raise in price tag of 2.16% and raise in OI by 2.61% as of today wherein there was addition of .48Lac shares in OI, rising from 18.54Lac to 19.03Lac shares. Bank Nifty July rollover stands at 7.44% as of Wednesday. Bank Nifty Put Call Ratio, a sentiment indicator applied by traders to gauge the market place sentiment and mood, is at present at 1.07 compared to .85 of last week indicating positive bias with caution at larger levels.
Bank Nifty Put choices OI distribution shows that 35,500 has highest OI concentration followed by 35,000 & 34,500 which may well act as help for existing expiry and on the Call front 36,000 followed by 36,500 & 35,700 witnessed considerable OI concentration and may well act as resistance.
In weekly choices Call writing seen at 35,700, 35,800 & 35,900 strike even though on the place side it was seen at 35,400 & 35,500.Options information indicated an quick trading variety involving 35,000 and 36,000 levels.
Bank Nifty OI Concentration
Bank Nifty OI Change
Nifty Strategy for weekly F&O expiry day
Traders can trade with Restricted Threat – Limitless PROFIT Method by Buying an At the Money Call selection with strike price tag of 15900 @ 17 of weekly expiry wherein this method will be lucrative if Nifty closes above 15917 on expiry, even though the maximum doable loss will be restricted to Rs 1,275 (17 points) which is the premium quantity paid by the trader & the gains can be limitless above the breakeven point of 15917.
The method for weekly expiry will be market place neutral method known as Long Straddle wherein traders require to purchase one lot each and every of Nifty 15,850 Call at 39 & 15,850 place at 37 choices to advantage from sharp movement on either side and trader gains so lengthy as the market place moves, irrespective of its path. The total premium outflow will be of Rs 5,700 (39 +37 =76 points) and break even point will be 15926 on the upside and reduce breakeven point will be 15774. The sharp swing breaching break even points on either side will raise the volatility, which in turn will raise the price tag of the get in touch with or place selection at some point creating earnings in method even though if there is no movement and Nifty trades variety bound then the maximum loss will be restricted to the premium paid i.e Rs 5,700.
(Rajesh Palviya is Vice President– Research (Head Technical & Derivatives) at Axis Securities Limited. The views expressed are the author’s personal. Please seek the advice of your economic advisor ahead of investing.)