By Rajesh Palviya
In Nifty present sequence there was a Short Build Up witnessed with lower in value of -3.24% and improve in OI by 21% as on Wednesday whereby there was addition of 17.83 lakh shares in OI, rising from 85.15 lakh to 102.99 lakh shares. Nifty present month rollover stands at 21.26% as on Wednesday, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is presently at 0.69 in comparison with 0.70 of final week, indicating a bounce again. India Vix, a market volatility indicator typically known as the worry gauge, is presently buying and selling 22.80% in comparison with 20.29% of final week. Implied Volatility of Nifty ATM choices for the present sequence is at 21.65% in distinction to twenty.05% of final week, indicating risky motion on both facet within the expiry session.
Nifty Put choices OI distribution exhibits that 16,000 has highest OI focus adopted by 16,100 & 15,900 which can act as help for present expiry and on the Call entrance 16,500 adopted by 16,400 & 16,300 witnessed vital OI focus and should act as resistance for present expiry.
In weekly choices there was Call writing seen at 16,500 strike adopted by 16,400 & 16,300 whereas on the Put facet noticeable exercise of writing was witnessed in 16,000 ,16,200 & 16,100 strike costs. Options information counsel an instantaneous buying and selling vary between 16,500 and 16,000 ranges.
Nifty Option OI focus
Nifty Option OI Change
Nifty Bank Outlook
In the present sequence there was a brief addition witnessed in Bank Nifty Fut with an lower in value of -4.76% and improve in OI by 39% as on Wednesday whereby there was addition of 9.81 lakh shares in OI, rising from 25.20 lakh to 35 lakh shares. Bank Nifty present sequence rollover stands at 9% as on Wednesday, whereas Bank Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is presently at 0.85 in comparison with 0.86 of final week indicating flat-to-positive transfer.
Bank Nifty Put choices OI distribution exhibits that 34,000 has highest OI focus adopted by 34,500 & 33,500 which can act as help for present expiry and on the Call entrance 35,000 adopted by 36,000 & 35,500 witnessed vital OI focus and should act as resistance.
In weekly choices Call writing seen at 35,000, 35,200 & 35,500 strike whereas on the put facet it was seen at 34,500 , 34,000 & 34,400 Options information indicated an instantaneous buying and selling vary between 35,500 and 34,000 ranges.
Bank Nifty OI Concentration
Bank Nifty OI Change
Nifty 50 buying and selling technique for weekly F&O expiry day
The technique which we’re suggesting for this weekly expiry dated nineteenth May is a Moderately Bullish technique known as as Call Ladder, which includes Buying of 1 lot of Nifty 16,200 Call @ 205 & promoting of 1 lot every of 16,400 Call @ 112 & one lot of 16,600 Call @ 54. The value of the technique includes outflow of Rs 1,950 which is the utmost loss if Nifty trades & stays beneath 16,250 ranges on expiry. The most revenue of Rs 8,050 might be attained at 16,400 ranges, whereas technique will begin making loss above 16,750, therefore it’s advisable to exit the technique in complete to keep away from limitless losses above 16,750. Break Even factors of the technique are 16,761 on upside & 16,239 on the decrease facet.
(Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities. Views expressed are the creator’s personal.)