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F&O weekly expiry trading information: use Bear Put Ladder technique; check trading vary, assist, resistance

Nifty Put choices OI distribution exhibits that 17,000 has highest OI focus adopted by 16,900 & 17,200 which can act as assist for present expiry

By Rajesh Palviya

In Nifty 50 present collection, there was a Short Covering witnessed with improve in value of 6.17% and reduce in OI by -3.21%  as of Wednesday whereby there was unwinding of three.54 lakh shares in OI, reducing from 110.40 lakh to 106.86 lakh shares. Nifty present month rollover stands at 36%, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants, to gauge the market sentiment and temper is at present at 0.85 in comparison with 1.33 of final week, indicating warning.

India Vix, a market volatility indicator typically referred to as the worry gauge, is at present trading 24.86% in comparison with 22.61% of final week. Implied Volatility of Nifty ATM choices for the present collection is at 25.78% in distinction to 23.72% of final week, indicating risky motion on both aspect within the expiry session.

Nifty Put choices OI distribution exhibits that 17,000 has highest OI focus adopted by 16,900 & 17,200 which can act as assist for present expiry and on the Call entrance 17,500 adopted by 17,400 & 17,300 witnessed important OI focus and should act as resistance for present expiry. 

In weekly choices there was Call writing seen at 17,500 strike adopted by 17,400 & 17,300 whereas on the Put aspect noticeable exercise of writing was witnessed in 17,100 ,17,000 & 17,300 strike costs. Options information counsel a direct trading vary between 17,000 and 17,500 ranges.

Nifty Open Interest Concentration 

Nifty Option OI Change 

Bank Nifty Outlook 

In present collection there was a Long Build Up witnessed in Bank Nifty Fut with a rise in value of two.73% and improve in OI by 13% as on at this time, whereby there was addition of two.67 Lac shares in OI, growing from 20.57Lac to 23.53Lac shares. Bank Nifty Current collection rollover stands at 64%, whereas Bank Nifty Put Call Ratio, a sentiment indicator utilized by merchants, to gauge the market sentiment and temper is at present at 0.59 in comparison with 0.89 of final week indicating flat-to-negative bias.

Bank Nifty Put choices OI distribution exhibits that 35,000 has highest OI focus adopted by 35,500 & 36,000 which can act as assist for present expiry and on the Call entrance 37,000 adopted by 36,500 & 36,800 witnessed important OI focus and should act as resistance.

In WEEKLY choices Call writing seen at 36,800, 36,500 & 37,000 strike whereas on the put aspect it was seen at 35,000 , 35,500 & 36,000 Options information indicated a direct trading vary between 35,000 and 37,000 ranges.

Bank Nifty Open Interest Concentration

Bank Nifty Option OI Change

Nifty 50 trading technique for month-to-month F&O expiry

The technique which we’re suggesting for the month-to-month expiry scheduled on thirty first March is a Bearish technique specifically PUT LADDER, which entails Buying of 1 lot of Nifty 17,300 PUT @ 263 & promoting of 1 lot every of 17,000 PUT @ 154 & one lot of 16,700 PUT @ 84. Put Ladder is a restricted revenue & limitless danger technique; which is an extension to the Put unfold and to additional convey down the price of the technique (Net premium) yet another additional leg of OTM PUT is offered and therefore any transfer beneath the offered leg can incur limitless loss.

The most revenue of Rs 13,750 might be attained at 17,000 ranges, whereas technique will begin making a loss beneath 16,400. The value of the technique entails outflow of Rs 1,250 if Nifty closes & stays above 17,250 ranges on expiry, nonetheless any sharper motion on decrease aspect may lead to losses as an additional put has been offered; it’s advisable to exit the technique in complete to keep away from UNLIMITED losses beneath 16,400. Break Even factors of the technique are 17,275 on Upside & 16,375 on the decrease aspect.

(Rajesh Palviya, VP – Research (Head Technical & Derivatives), Axis Securities. Views expressed are the creator’s personal.)

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