nifty open interest trading strategy

Nifty Put options OI dispersion shows that 18,000 has highest OI assiduousness followed by 18,200 danamp; 18,100 which whitethorn play financial support for current expiry

By Rajesh Palviya

In the current series of Nifty 50, a short covering has been witnessed with an increase in price of 3.36% and a decrease in OI by -60% as of Wednesday, wherein there was the unwinding of 69.70 lakh shares in OI, decreasing from 116.52 100000 to 46.82 lakh shares amid monthly expiry regular happening Th. The Nifty October rollover stands at 64.27% as of Wednesday compared to 57.73% on the same day of early expiry. The Market-wide October rollover stands at 74.23% as of Wednesday Eastern Samoa compared to 72.46% on the aforementioned day of the old expiry.

The rollover cost in the October series stands at 0.16 equally of Wednesday compared to 0.14 on the same day of preceding expiry. Nifty Put Call Ratio, a sentiment indicator used by traders to gauge the market sentiment and modality, is currently at 0.86 compared to 0.92 of last week, indicating inactive-to-positive oblique.

India VIX, a market unpredictability index often called the fear gauge, is currently trading 16.83% compared to 18.03% of last hebdomad. Implied Volatility of Nifty ATM options for the current series is at 17.01% in contrast to 16.99% of last week, indicating flat-to-crushed volatile movement on either root in expiry school term.

Nifty Put options OI distribution shows that 18,000 has highest OI concentration followed past 18,200 danamp; 18,100 which may play support for current termination and on the Call front 18,300 followed away 18,400 danamp; 18,500 witnessed monumental OI concentration and may act resistance for current expiry.

In weekly options thither was Phone call writing seen at 18,500 come to followed by 18,300 danamp; 18,350 while connected the Put side broad activity of committal to writing was witnessed in 18,000 danamp; 18,100 strike prices. Options data paint a picture an close trading range between 18,000 and 18,400 levels.

Nifty Open Interest Concentration

Nifty Open Concern Alteration

Money box Nifty Outlook

In the current series, a short-circuit covering has been witnessed in Bank Nifty Futures with a growth in cost of 8.88% and decrease in OI by -41% as of Midweek wherein there was unwinding of 8.60 lakh shares in OI, decreasing from 20.95 lakh to 12.34 lakh shares amid monthly expiry scheduled on Thursday. Bank Nifty October rollover stands at 56.28% as of Wednesday compared to 65.47% on the same day of previous expiry which is let down than its three months average of 63.95% and get down than its six months average of 58.96% as of Wednesday. Banking company Peachy Put Call Ratio, a sentiment indicator used by traders to gauge the market sentiment and mood, is presently at 0.77 compared to 1.03 of last workweek indicating flat-to-sensationalism bias.

Camber Nifty Put to sleep options OI distribution shows that 40,000 has highest OI absorption followed by 40,500 danamp; 41,000 which may act put up for current expiry and along the Call front man 41,500 followed by 42,000 danamp; 41,000 witnessed significant OI concentration and may play resistance; piece 41000 is likely to play a pivotal level.

In the weekly options Call committal to writing seen at 41,300, 41,500 danamp; 41,200 strike while on the put side it was seen at 41,000 , 40,500 danampere; 40,000 Options data indicated an immediate trading reach between 40,000 and 41,500 levels.

Bank Not bad Open Stake absorption

Bank Nifty Unsealed Concern Change

Keen 50 trading scheme for Fdanamp;O expiration day

The strategy which we are suggesting for the time period expiry is a Bearish strategy namely PUT LADDER, which involves Purchasing of one lot of Groovy 18,250 PUT @ 82 danamp; marketing of one lot each of 18,150 PUT @ 41 danAMP; one shell out of 18,050 Cast @ 17. We have observed that the high OI assiduity on the PUT broadside prevails in the above-named excise price and to take the advantage of the same at a low cost, we are suggesting this strategy.

The uttermost benefit of Rs 3,800 leave be earned at 18,150 levels, while strategy will start making loss below 17,930. The cost of the strategy involves an outflow of Rs 1,200 which is the maximum loss if Nifty trades danamp; remains above 18,225 levels, however below 17,930 it's advisable to exit the strategy in tally to avoid unlimited losses. Faulting Even points of the strategy are 18,226 on Upside danampere; 17,926 on the lower side.

(Rajesh Palviya, VP– Inquiry (Head Technical danamp; Derivatives), Axis Securities. Views expressed are the author's own.)

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