By Rajesh Palviya
In the Nifty’s present collection, a brief overlaying has been witnessed with a rise in value of three.94% and reduce in OI by -5.48% as of Wednesday whereby there was unwinding of 6.38 lakh shares in OI, lowering from 116.52 lakh to 110.14 lakh shares. Nifty October rollover stands at 18.31%, whereas Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is at the moment at 0.91 in contrast to 1.53 of final week, indicating constructive bias.
India VIX, a market volatility indicator typically known as the worry gauge, is at the moment trading 18.31% in contrast to 15.77% of final week.Implied Volatility of Nifty ATM choices for the present collection is at 18.23% in distinction to 14.18% of final week, indicating risky motion on both facet in coming session.
Nifty Put choices OI distribution exhibits that 18,000 has highest OI focus adopted by 18,200 & 18,100 which may act as help for present expiry and on the Call entrance 18,500 adopted by 18,600 & 18,400 witnessed vital OI focus and may act as resistance for present expiry.
In weekly choices, there was Call writing seen at 18,500 strike adopted by 18,600 & 18,400 whereas on the Put facet noticeable exercise of writing was witnessed in 18,000 & 18,200 strike costs. Options information recommend a direct trading vary between 18,200 and 18,600 ranges.
Nifty Open curiosity Concentration
Nifty Option OI Change
Bank Nifty Outlook
In the present collection, there was a short-covering witnessed in Bank Nifty Futures with a improve in value of 5.41% and reduce in OI by -25.35% as of Wednesday whereby there was unwinding of 5.31 lakh shares in OI, lowering from 20.95 lakh to 15.64 lakh shares. Bank Nifty October rollover stands at 11.51%, whereas Bank Nifty Put Call Ratio, a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is at the moment at 0.86 in contrast to 1.12 of final week indicating constructive bias.
Bank Nifty Put choices OI distribution exhibits that 39,000 has highest OI focus adopted by 38,500 & 38,000 which may act as help for present expiry and on the Call entrance 39,500 adopted by 40,000 & 40,500 witnessed vital OI focus and may act as resistance. In the weekly choices Call writing seen at 38,800, 40,000 & 40,200 strike whereas on the put facet it was seen at 39,500, 39,400 and 39,000. Options information indicated a direct trading vary between 40,000 and 39,000 ranges.
Bank Nifty OI Concentration
Bank Nifty OI Change
Nifty trading technique for F&O expiry day
The technique which we’re suggesting for the week is a Bullish technique particularly CALL LADDER, which includes Buying of 1 lot of Nifty 18,300 Call @ 69 & promoting of 1 lot every of 18,400 Call @ 29 & one lot of 18,500 Call @ 11.All the choices have weekly expiry of twenty first October 2021. We have noticed that the best OI focus on the decision facet prevails in the above-mentioned strike value indicating a possible resistance zone & to take the benefit of the identical at low price we’re suggesting this technique.
The most revenue of Rs 3,550 will probably be attained at 18,400 ranges, whereas technique will begin making loss above 18,570. The price of the technique includes outflow of Rs 1,450 which is the utmost loss if Nifty trades & stays under 18,330 ranges, nevertheless above 18,570 it’s advisable to exit the technique in whole to keep away from UNLIMITED losses. Break Even factors of the technique are 18,570 on Upside & 18,330 on the decrease facet.
(Rajesh Palviya, VP– Research (Head Technical & Derivatives), Axis Securities. Views expressed are the writer’s personal.)