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Banking stocks declined on Tuesday, pushing the Bank Nifty index lower on the back of renewed selling by domestic financial institutions. The Bank Nifty October contract was down 137.65 points and ended at 24,575. The underlying value of the contract closed at 24,527.65.
Active call options of Oct 11 expiry
In the call option chain, the in-the-money Bank Nifty Call 24500 option was the actively traded contract on Tuesday. The option price closed at Rs 194.05, down by 39 per cent. The OI in the contract has increased by 31.10 per cent, with the addition of 50,760 shares. The implied volatility was seen higher at 23.87 per cent. This confirms that the underlying Bank Nifty is likely to encounter resistance around 24,700-24,800 levels in this expiry.
The Bank Nifty Call 24800 option contract of this expiry is currently an Out-Of-The-Money option that turned very active yesterday. The contract price was down by 55.85 per cent and closed at Rs 76. The OI in the contract saw a 33.70 per cent increase, as traders have taken fresh positions here. The IV of the option price was comparatively higher at 24.16 per cent. This indicates that the underlying Bank Nifty is likely to meet strong resistance around 24,900-25,000 levels in this expiry.
Active put options of Oct 11 expiry
In the put option chain, the in-the-money Bank Nifty Put 24600 option contract was the most actively traded contract on Tuesday. The put option price gained 22.50 per cent and closed at Rs 259.60. The OI for the contract has improved by 12.85 per cent. The implied volatility was higher at 31.60 per cent. Traders bought this option contract expecting the Bank Nifty to decline by the expiry. This confirms that the underlying may get traction around 24,300-24,400 levels for this weekly expiry.
The Bank Nifty Out-of the-money Put 24300 strike price was one of the most actively traded contracts in yesterday’s trading session. This out-of-the-money put option price was up 3 per cent and ended at Rs 127.80. The OI in the counter has increased 46.15 per cent. The IV of the option price was steeply higher at 31.60 per cent, which implies there was good demand for the contract at these price levels. This suggests that the Bank Nifty underlying is likely to get support around 24,200-24,300 levels for the expiry.
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