By Rajesh Palviya
In Nifty present sequence there was a Short Covering witnessed with improve in value of two.10% and reduce in OI by 8% as of Wednesday, whereby there was unwinding of 8.88 lakh shares in OI, reducing from 112.81 lakh to 103.93 lakh shares. Nifty present month rollover stands at 14% as of Wednesday, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is presently at 0.82 in comparison with 1.13 of final week, indicating a flat-to-negative motion for expiry.
India Vix, a market volatility indicator usually referred to as the concern gauge, is presently buying and selling 20.84% in comparison with 22.72% of final week. Implied Volatility of Nifty ATM choices for the present sequence is at 20.05% in distinction to 22.05% of final week, indicating decrease risky motion on both facet on the expiry session.
Nifty Put choices OI distribution reveals that 16,800 has highest OI focus adopted by 16,700 & 16,600 which can act as assist for present expiry and on the Call entrance 16,200 adopted by 16,300 & 16,400 witnessed vital OI focus and should act as resistance for present expiry.
In WEEKLY choices there was Call writing seen at 16,800 strike adopted by 16,700 & 16,600 whereas on the Put facet noticeable exercise of writing was witnessed in 16,200 ,16,300 & 16,400 strike costs. Options knowledge recommend an instantaneous buying and selling vary between 16,800 and 16,200 ranges.
Nifty OI Concentration
Nifty Option OI Change
Nifty Bank Outlook
In present sequence there was a Long Addition witnessed in Bank Nifty Fut with a rise in value of 1.39% and improve in OI by 4% as of Wednesday whereby there was unwinding of 0.97 lakh shares in OI, reducing from 23.79 lakh to 22.82 lakh shares. Bank Nifty Current sequence rollover stands at 9% as on immediately, whereas Bank Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is presently at 0.95 in comparison with 0.99 of final week indicating flat-to-positive motion for expiry.
Bank Nifty Put choices OI distribution reveals that 35,000 has highest OI focus adopted by 35,500 & 34,500 which can act as assist for present expiry and on the Call entrance 36,000 adopted by 36,500 & 36,200 witnessed vital OI focus and should act as resistance.
In weekly choices Call writing seen at 35,000, 35,500 & 34,500 strike whereas on the put facet it was seen at 36,000, 36,500 & 36,200 Options knowledge indicated an instantaneous buying and selling vary between 35,000 and 36,500 ranges.
Bank Nifty Open Interest Concentration
Bank Nifty Open Interest Change
Nifty 50 buying and selling technique for weekly F&O expiry
The technique which we’re suggesting for the Weekly EXPIRY scheduled on 09th June is a Bearish technique particularly PUT LADDER, which entails Buying of 1 lot of Nifty 16,500 PUT @ 192 & promoting of 1 lot every of 16,300 PUT @ 115 & one lot of 16,100 PUT @ 66. The most revenue of Rs 9,450/- will likely be attained at 16,300 ranges, whereas technique will begin making loss beneath 15,900. The price of the technique entails outflow is Rs 550/-, which is the utmost loss if Nifty closes & stays above 16,490 ranges on expiry, nevertheless any sharper motion on decrease facet might lead to losses and, as an additional put has been offered it’s advisable to exit the technique in whole to keep away from UNLIMITED losses beneath 15,900. Break Even factors of the technique are 16,489 on Upside & 15,889 on the decrease facet.
(Rajesh Palviya, VP – Research (Head Technical and Derivative) at Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”