By Rajesh Palviya
In Nifty present collection there was a Long Unwinding witnessed with lower in worth of -4.22% and reduce in OI by 45% as on at this time ,whereby there was unwinding of 37.94 lakh shares in OI, lowering from 85.15 lakh to 47.21 lakh shares and the numerous unwinding in present collection was as a result of month-to-month expiry scheduled tomorrow. Nifty present month rollover stands at 66% as on at this time, whereas Nifty Put Call Ratio a sentiment indicator utilized by merchants to gauge the market sentiment and temper is presently at 0.73 in comparison with 0.80 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 25.46% in comparison with 24.56% of final week. Implied Volatility of Nifty ATM choices for the present collection is at 23.75% in distinction to 24.37% of final week, indicating decrease Volatile motion on both sides in expiry session. Nifty Put choices OI distribution exhibits that 16,000 has highest OI focus adopted by 15,700 & 15,800 which can act as assist for present expiry and on the Call entrance 16,200 adopted by 16,100 & 16,300 witnessed important OI focus and will act as resistance for present expiry. In WEEKLY choices there was Call writing seen at 16,200 strike adopted by 16,300 & 16,150 whereas on the Put aspect noticeable exercise of writing was witnessed in 16,000 ,15,700 & 15,800 strike costs. Options information counsel an instantaneous buying and selling vary between 16,250 and 15,750 ranges.
Nifty Open Interest Concentration
Nifty Option OI Change
Banknifty Outlook
In present collection there was a Long Unwinding witnessed in Bank Nifty Fut with an lower in worth of -5.85% and reduce in OI by 53% as on at this time, whereby there was unwinding of 13.44 lakh shares in OI, lowering from 25.20 lakh to 11.76 lakh shares in present collection and the numerous unwinding was as a result of month-to-month expiry scheduled tomorrow. Bank Nifty Current collection rollover stands at 60% as on at this time, whereas Bank Nifty Put Call Ratio a sentiment indicator utilized by merchants to gauge the market sentiment, is presently at 0.79 in comparison with 0.67 of final week indicating Flat-to-Negative motion for expiry.
Bank Nifty Put choices OI distribution exhibits that 34,000 has highest OI focus adopted by 33,00 & 33,500 which can act as assist for present expiry and on the Call entrance 34,500 adopted by 35,000 & 35,500 witnessed important 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 aspect it was seen at 34,000 , 34,200 & 33,500 Options information indicated an instantaneous buying and selling vary between 35,500 and 33,500 ranges.
Banknifty Option OI Concentration
Banknifty Option OI Change
Nifty Strategy
The technique which we’re suggesting for the Weekly EXPIRY scheduled on 2nd June is a Bearish technique specifically PUT LADDER, which entails Buying of 1 lot of Nifty 16,000 PUT @ 221 & promoting of 1 lot every of 15,700 PUT @ 115 & one lot of 15,400 PUT @ 56. Put Ladder is a restricted revenue & limitless threat technique; which is an extension to the Put unfold and to additional carry down the price of the technique (Net premium) another additional leg of OTM PUT is bought and therefore any transfer beneath the bought leg can incur limitless loss.
The most revenue of Rs 12,500 will likely be attained at 15,700 ranges, whereas technique will begin making loss beneath 15,100. The value of the technique entails outflow is Rs 2,500, which is the utmost loss if Nifty closes & stays above 15,950 ranges on expiry, nevertheless any sharper motion on decrease aspect may end in losses and, as an additional put has been bought it’s advisable to exit the technique in complete to keep away from UNLIMITED losses beneath 15,050. Break Even factors of the technique are 15,950 on Upside & 15,050 on the decrease aspect.
(Rajesh Palviya, VP – Research (Head Technical and Derivative) at Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”