On the weekly solutions expiry day, the anticipated wider trading variety for NSE Nifty 50 index is 15,600-15,900 when 35,000 could possibly act as a pivotal level for Bank Nifty. Both Nifty 50 and Bank Nifty indices ended in damaging on Wednesday. Analysts count on volatility and restricted upside in the marketplace on the weekly solutions expiry day today. India VIX, the volatility index, cooled off .86 per cent from 15 to 14.87 levels given that last Thursday’s close. India VIX ended yesterday at the lowest point given that February 2020. Analysts say any additional fall in the worry gauge could possibly push the Nifty 50 index larger.
On Nifty solutions, the maximum Put OI is at 15,700 followed by 15,600 strike value. While maximum Call OI is at 15,900 followed by 15,800 strike value. Call writing was seen at 15,800 and 15,900 strikes, when Put writing was seen at 15,600, then 15,one hundred level strikes. Call unwinding was at 16,400 and 16,250 strikes and place unwinding was seen at 15,000 and 15,900. For Bank Nifty solutions, the highest open interest on the contact side in the weekly expiry is at 35,000, followed by 35,500 strike when the highest OI on the place side is at 35,000-34,500 strike.
Rajesh Palviya, Vice President, Research (Head Technical & Derivatives), Axis Securities
Nifty as per the provisional information has witnessed lengthy unwinding with a value reduce of -.64% and a lower in OI of 3.92lac shares compared with Tuesday, when in Bank nifty has seen brief construct-up with value reduce of (.67%) & OI addition of .95 lac shares. The sentiment indicator Computer Ratio (Nifty) is presently trading at 1.14 close to the median line indicating positive bias. In Nifty the highest OI on the Get in touch with side in the weekly expiry scheduled 17th June is at 15,800 & 15,900 strikes wherein writing of 34.13Lac shares was seen in 15,800 strike & 26Lac in 15900 strike, when on the Place side highest OI is at 15,700 & 15,600 strikes and writing of 10.35Lac share was seen at 15,600 strike. So the tentative variety for the weekly expiry is most likely to be among 15,900 to 15,600. In Bank Nifty the highest OI on the Get in touch with side in the weekly expiry is at 35,000 -35,500 & 36,000 strike when on the Place side highest OI is at 35,000-34,500 & 34,000 strike, with 35,000 acting as a pivotal level for this weekly expiry as there has been addition of 12.15Lac shares on Get in touch with side & 5.62 Lac addition on Place side suggesting that any sustain move on either side of this level will make a decision the trend in Bank nifty.
The tactic for Thursday will be marketplace neutral tactic named Long Straddle wherein traders want to obtain one lot every single of Nifty 15,750 Call at 65, and 15,750 Put at 54 solutions to advantage from sharp movement on either side and trader gains so lengthy as the marketplace moves, irrespective of its path. The total premium outflow will be of Rs 8,900 (65+54 =119 points) and breakeven point will be 15,869 on upside and reduced breakeven point will be 15,631. The sharp swing breaching break even points on either side will enhance the volatility, which in turn will raise the value of the contact or place choice at some point producing earnings in tactic when if there is no movement, and Nifty trades variety bound then the maximum loss will be restricted to the premium paid ie Rs 8,900.
Sameet Chavan, Chief Technical Analyst, Angel Broking
As far as Options activity is concerned, 15800-15950 contact solutions has seen decent construct up ahead of the expiry and therefore, upside appears restricted on the expiry day. The way the broader marketplace behaved on Wednesday, traders are advised to lighten up aggressive longs on intraday bounce. In truth, one can take a punt by acquiring At The Money Put choice for Nifty and Banknifty in case we see them trading about 15820 and 35250, respectively.
Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services
Throughout the day, the NIFTY witnessed heavy Call writing at 15800, 15850 and 15900 levels out of this, 15800 strike saw maximum addition of contact OI of 3.4 million shares. Unless this level is taken out, NIFTY will face really stiff resistance on the weekly solutions expiry day tomorrow. These 3 strikes also saw important Place OI unwinding as properly.
Ajit Mishra, VP – Research, Religare Broking
Things to take into account when trading Nifty and BankNifty on weekly expiry day are
(a) use open interest (OI) information of Nifty and Banknifty to gauge the participants positioning (lengthy buildup/ brief buildup/ lengthy unwinding/ brief covering)
(b) Option chain evaluation: look for solutions strikes that have highest opening interest in each Call and Put. Never trade beyond these solutions strikes getting highest open interest (OI) construct up.
(c ) Square of In-The-Money (ITM) lengthy solutions ahead of expiry. If in-the-income lengthy solutions are permitted to expire, STT would be levied as per law on the complete contract worth plus premium on the sell side which is .125%.
(d) Always trade with strict cease loss simply because of theta (Time decay) on expiry day.
(e) Proper position sizing and income management is equally important.
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