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Banking index had posted modest gains on Monday on value buying at lower levels coupled with some short-covering by traders. Weakness in crude prices also helped to revive the market sentiment.
Bank Nifty index had closed higher by 174.90 points at 24,618.35. October futures contract of the index gained 188.95 points to 24,708.65.
Active call options of Oct 11 expiry
Among the call option chain, the in-the-money Bank Nifty Call 24,600 option was the actively traded contract on Monday. The option price closed at Rs 257, up by 27.80 per cent. However, open interest in the contract increased by 152.80 per cent.
Traders have bought fresh long-call positions in the contract. The implied volatility was sharply higher at 26.66 per cent. This confirms that the underlying Bank Nifty may encounter stiff resistance around 24,800-24,900 levels in this weekly expiry.
Bank Nifty Call 25,000 option contract is currently an out-of-the-money option that turned very active for the weekly expiry on Monday. The call option price was down by 11.13 per cent and closed at Rs 93.
The contract’s open interest rose 35.50 per cent witnessing a fresh addition of 2.17 lakh shares. The IV of the option price was also steeply higher at 25.60 per cent.
Since there was sizeable addition of OI at this strike price, the underlying Bank Nifty index may encounter strong resistance around 25,000 levels in this expiry.
Active put options of Oct 11 expiry
On the put option chain, the in-the-money Bank Nifty Put 24,700 option contract turned active on Monday. The put option price had ended down 39.70 per cent at Rs 260. Open interest increased by 51 per cent.
The implied volatility was sharply higher at 25.55 per cent, which implies that this contract price was in demand. This confirms that the underlying Bank Nifty is likely to get support around 24,350-24,400 levels in the short term.
Bank Nifty out-of the-money Put 24,500 contract traded active on Monday. This out-of-the-money put option price shed 42.55 per cent to Rs 178.90. Open interest in the counter gained 62 per cent. The IV of the option price was comparatively higher at 27.25 per cent. This confirms that the Bank Nifty underlying may get support around 24,250-24,300 levels in this expiry
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