By Rajesh Palviya
In Nifty present sequence there was a Long Unwinding witnessed with lower in value of -4.73% and reduce in OI by -3% as of Wednesday whereby there was unwinding of three.01 lakh shares in OI, reducing from 112.81 lakh to 109.79 lakh shares. NSE Nifty 50 present month rollover stands at 24%, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is at the moment at 0.81 in comparison with 1.28 of final week, indicating a flat-to-cautious motion for expiry.
India VIX, a market volatility indicator usually known as the worry gauge, is at the moment buying and selling 21.30% in comparison with 22.87% of final week. Implied Volatility of Nifty ATM choices for the present sequence is at 21.63% in distinction to 24.17% of final week, indicating decrease risky motion on both facet in expiry session.
Nifty Put choices OI distribution exhibits that 15,200 has highest OI focus adopted by 15,300 & 15,400 which can act as help for present expiry and on the Call entrance 15,700 adopted by 15,500 & 15,600 witnessed vital OI focus and should act as resistance for present expiry. Options information recommend an instantaneous buying and selling vary between 15,600 and 15,200 ranges.
Nifty Open Interest Concentration
Nifty Option OI Change
Nifty Bank Outlook
In present sequence there was a Long Unwinding witnessed in Bank Nifty Fut with an lower in value of -6.62% and reduce in OI by -11% as of Wednesday whereby there was unwinding of two.50 lakh shares in OI, reducing from 23.79 lakh to 21.29 lakh shares. Bank Nifty Current sequence rollover stands at 25%, whereas Bank Nifty Put Call Ratio is at the moment at 0.86 in comparison with 0.69 of final week indicating flat-to-negative motion for expiry.
Bank Nifty Put choices OI distribution exhibits that 32,500 has highest OI focus adopted by 32,000 & 31,500 which can act as help for present expiry and on the Call entrance 33,500 adopted by 34,000 & 33,000 witnessed vital OI focus and should act as résistance. Options information indicated an instantaneous buying and selling vary between 33,500 and 32,300 ranges.
Significant Call writing in Bank Nifty was seen at 33,500,33,000 & 34,000 strike whereas on put facet it was seen at 32500, 32800 & 32500.
Bank Nifty Option OI Concentration
Bank Nifty Option OI Change
NSE Nifty 50 buying and selling technique for thirtieth June F&O expiry
The technique which we’re suggesting for this weekly expiry dated thirtieth June is a Moderately Bullish technique known as as CALL LADDER, which entails Buying of 1 lot of NIFTY 15,450 Call @ 168 & promoting of 1 lot every of 15,650 Call @82 & one lot of 15,850 Call @ 36. The value of the technique entails outflow of Rs 2,500/- which is the utmost loss if NIFTY trades & stays under 15,500 ranges on expiry .The most revenue of Rs 7,500/- will probably be attained above 15,650 ranges, whereas technique will begin making loss if Nifty crosses 16,000, therefore it’s advisable to exit the technique in whole to keep away from UNLIMITED losses above 16,000. Break Even factors of the technique are 16,000 on Upside & 15,500 on the decrease facet.
(Rajesh Palviya, VP – Research (Head Technical and Derivative) at Axis Securities. Views expressed are the creator’s personal.)