By Rajesh Palviya
In the Nifty present series, there has been a Long Build Up witnessed with an enhance in value of .34% and an enhance in OI by 1.10% till Wednesday wherein there was addition of 1.03 lakh shares in OI, rising from 93.23 lakh to 94.25 lakh shares. Nifty July rollover stands at 6.15% as on Wednesday. Nifty Put Call Ratio, a sentiment indicator utilized by traders to gauge the industry sentiment and mood, is presently at 1.25 compared to 1.12 of last week, indicating positive bias.
India VIX, a industry volatility indicator generally known as the worry gauge, is presently trading 12.21% compared to 12.84% of last week. Implied Volatility of Nifty ATM possibilities for the present series is at 12.07% in contrast to 12.29% of last week, indicating low volatile movement on either side in the coming session.
Nifty Put possibilities OI distribution shows that 15,800 has highest OI concentration followed by 15,700 which may possibly act as assistance for present expiry and on the Call front 16,000 followed by 16,one hundred & 15,900 witnessed considerable OI concentration and may possibly act as resistance for present expiry.
In weekly possibilities there was Call writing seen at 16,000 strike followed by 16,one hundred whilst on the Put side noticeable activity of writing was witnessed in 15,800, 15750 & 15,700 strike costs. Options information recommend an instant trading variety in between 15,700 and 16,000 levels.
Nifty Open Interest Concentration
Nifty OI Change
Bank Nifty Outlook
In present series there has been a Long Build Up witnessed in Bank Nifty Futures with a reduce in value of 2.47% and enhance in OI by 6.73% till Wednesday wherein there was addition of 1.25 lakh shares in OI, rising from 18.54 lakh to 19.79 lakh shares till Wednesday.. Bank Nifty July rollover stands at 5.37% as on 7 July 2021. Bank Nifty Put Call Ratio, a sentiment indicator utilized by traders to gauge the industry sentiment and mood, is presently at 1.27 compared to .75 of last week, indicating positive bias with caution at larger levels.
Bank Nifty Put possibilities OI distribution shows that 35,000 has highest OI concentration followed by 35,500 and 34,000 which may possibly act as assistance for present expiry and on the Call front 36,000 followed by 36,500 and 37,000 witnessed considerable OI concentration and may possibly act as resistance.
In weekly possibilities Call writing seen at 35,900, 36,000 and 36,500 strike whilst on the place side it was seen at 35,000 and 35,500.Options information indicated an instant trading variety in between 35,000 and 36,500 levels.
Banknifty OI Concentration
Banknifty Option OI Change
Nifty method for weekly expiry
Traders can trade with Restricted Danger – Limitless PROFIT Approach by shopping for an At The Money Call selection with strike value of 15900 @ 25 of weekly expiry wherein this method will be lucrative if Nifty closes above 15925 on expiry, whilst the maximum attainable loss will be restricted to Rs 1,875 (25 points) which is the premium quantity paid by the trader and the gains can be limitless above the breakeven point of 15925.
The other method with Bullish view and decreased premium outflow and decrease breakeven point is BULL Get in touch with SPREAD wherein trader will get one lot of 15850 get in touch with strike @ 50 and simultaneously sell one lot of 15950 get in touch with strike @ 10, so that net outflow or maximum loss will be restricted to up to Rs 3,000 (40 points). If NIfty on expiry closes above 15890, the method will get started producing 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 4,500 (60 points) only since the gains of extended 15850 strike get in touch with will be offset by the sold 15950 strike get in touch with, if Nifty closes above 15950 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 the advice of your economic advisor prior to investing.)