By Rajesh Palviya
In Nifty present collection there was a Long Unwinding witnessed with lower in worth of -2.95% and reduce in OI by -2% as on in the present day whereby there was shedding of 1.51 lakh shares in OI, lowering from 85.15 lakh to 83.64 lakh shares. Nifty present month rollover stands at 30.45% as of Wednesday, with Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is presently at 0.87 in comparison with 0.75 of final week, indicating a flat-to-negative motion for expiry.
India Vix, a market volatility indicator typically known as the concern gauge, is presently buying and selling 22.30% in comparison with 24.26% of final week. Implied Volatility of Nifty ATM choices for the present collection is at 21.23% in distinction to 23.68% of final week, indicating decrease risky motion on both facet within the expiry session. Nifty Put choices OI distribution reveals that 16,000 has highest OI focus adopted by 16,100 & 15,900 which can act as assist for present expiry and on the Call entrance 16,500 adopted 16,400 & 16,300 witnessed vital OI focus and will 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 knowledge recommend a direct buying and selling vary between 16,500 and 16,000 ranges.
Nifty Open Interest Concentration
Nifty Option OI Change
Nifty Bank Outlook
In present collection there was a Long Unwinding witnessed in Bank Nifty Fut with an lower in worth of -6.37% and reduce in OI by -3.05% as on Wednesday whereby there was shedding of 0.77 lakh shares in OI, lowering from 25.20 lakh to 24.43 lakh shares. Bank Nifty Current collection rollover stands at 15.41% as of Wednesday, whereas Bank Nifty Put Call Ratio is presently at 0.83 in comparison with 0.67 of final week indicating flat-to-negative motion for expiry.
Bank Nifty Put choices OI distribution reveals that 33,000 has highest OI focus adopted by 34,000 & 33,500 which can act as assist for present expiry and on the Call entrance 34,500 adopted by 35,000 & 35,500 witnessed vital OI focus and will act as resistance.
In WEEKLY choices Call writing seen at 34,500, 34,600 & 35,000 strike whereas on the put facet it was seen at 34,000 , 34,200 & 33,500 Options knowledge indicated a direct buying and selling vary between 35,000 and 33,500 ranges.
Bank Nifty Open Interest Concentration
Bank Nifty Option OI Change
Nifty 50 index buying and selling technique for month-to-month F&O expiry day
Markets throughout May expiry are prone to make a large transfer in both of the instructions with elevated Implied volatility which suggests elevated choice worth, and to make the most of the identical we’re suggesting a market-neutral technique known as Long Strangle for month-to-month expiry at twenty sixth May 2022.This technique entails shopping for of (OTM) 16250 CALL & 16200 PUT one lot every having premium of 180 & 181 respectively making a complete premium outflow of Rs 18,050 (361 factors). As it’s a debit unfold, from revenue perspective this technique can generate theoretically limitless revenue whereas the loss is restricted to whole premium paid if Nifty closes close to the lengthy choices on expiry; nevertheless as soon as Nifty breaches the higher breakeven degree of 16,611 or the decrease breakeven degree of 15,839 and sustains on both facet then the revenue may be limitless. It’s advisable to keep up a mix premium (i.e add premium of name + put collectively) cease lack of 150-160 factors in order that if Nifty doesn’t make a robust transfer then losses may be curtailed by following the above talked about cease loss or else Traders as per there danger urge for food may even maintain until expiry.
(Rajesh Palviya, VP – Research (Head Technical and Derivative) at Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”