By Rajesh Palviya
In Nifty present sequence there was a Long Build Up witnessed with improve in worth of 1.50% and improve in OI by 5% as of Wednesday whereby there was addition of 5.18 lakh shares in OI, rising from 112.89 lakh to 118.07 lakh shares. Nifty present month rollover stands at 15% as of Wednesday, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is at present at 0.78 in comparison with 1.27 of final week, indicating a flat-to-negative motion for expiry.
India VIX, a market volatility indicator typically referred to as the worry gauge, is at present buying and selling 18.52% in comparison with 19.20% of final week. Implied Volatility of Nifty ATM choices for the present sequence is at 18.65% in distinction to 19.06% of final week, indicating low unstable motion on both facet within the expiry session.
Nifty Put choices OI distribution reveals that 15,800 has highest OI focus adopted by 15,600 & 15,700 which can act as help for present expiry and on the Call entrance 16,100 adopted by 16,200 & 16,300 witnessed vital OI focus and will act as resistance for present expiry. Options knowledge counsel a right away buying and selling vary between 15,800 and 16,200 ranges.
In Nifty Call writing was witnessed at 16,000 , 16,100 & 16,300 ;whereas on Put facet it was seen at 15,800 ,15,600 &15,500.
Nifty Open Interest Concentration
Nifty Option OI change
Bank Nifty Outlook
In present sequence there was a Short Covering witnessed in Bank Nifty Fut with a rise in worth of 4.57% and reduce in OI by 8% as of Wednesday, whereby there was unwinding of 1.78 lakh shares in OI, reducing from 22.34 lakh to twenty.56 lakh shares. Bank Nifty Current sequence rollover stands at 16% as of Wednesday, whereas Bank Nifty Put Call Ratio is at present at 0.74 in comparison with 1.13 of final week indicating flat-to-negative motion for expiry.
Bank Nifty Put choices OI distribution reveals 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 35,300 adopted by 35,500 & 35,800 witnessed vital OI focus and will act as résistance. Options knowledge indicated a right away buying and selling vary between 34,000 and 35,500 ranges.
On a weekly foundation vital Call writing in Bank Nifty was seen at 35,000 ,35,200 & 35,300 strike whereas on put facet it was seen at 34,000, 34,500 & 34,400.
Bank Nifty Open Interest Concentration
Bank Nifty Option OI Change
NSE Nifty 50 buying and selling technique for 21 July weekly F&O expiry
The technique which we’re suggesting for the weekly expiry scheduled on twenty first July is a bearish technique specifically PUT LADDER, which includes shopping for of 1 lot of Nifty 16,000 PUT @ 187 & promoting of 1 lot every of 15,800 PUT @ 106 & one lot of 15,600 PUT @ 57. The most revenue of Rs 8,800 shall be attained at 15,800 ranges, whereas technique will begin making loss beneath 15,400. The value of the technique includes outflow is Rs 1,200, which is the utmost loss if Nifty closes & stays above 15,976 ranges on expiry, nonetheless any sharper motion on decrease facet may lead to losses and, as an additional put has been offered it’s advisable to exit the technique in whole to keep away from limitless losses beneath 15,400. Break Even factors of the technique are 15,976 on upside, and 15,376 on the decrease facet.
(Rajesh Palviya, Vice President – Research ( Head Technical & Derivatives), Axis Securities. Views expressed are the writer’s personal.)
Source: www.financialexpress.com”