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Banking index fell 1 per cent on Monday as the rupee crashed to a fresh record low of 72.67 against the dollar amid rise in crude oil prices. Negative global cues and widening of current account deficit to $15.8 billion in April-June this year ($15 billion) also had startled investors.
Bank Nifty September futures contract ended lower by 253 points at 27,340, while Bank Nifty spot index closed at 27,201.75.
Active Call Options of Sept 12 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 27,200 option was the most actively traded contract on Monday. The option price was down 57.20 per cent and closed at Rs 160.
Open interest in the contract jumped by 398.45 per cent which confirms that traders have added fresh positions in the contract. The implied volatility was remarkably higher at 18.90 per cent.
It is an indication that the underlying Bank Nifty will face resistance around 27,450 levels in the short term. However, if it is able to clear this level while running upside, the underlying Bank Nifty may move further up to 27,600 levels.
The Bank Nifty Call 27,500 option contract is currently an Out-Of-The-Money option that traded active on Monday. The option price declined 72.80 per cent to Rs 44.50.
However, OI rose sharply 98.70 per cent with the IV of the option price sharply higher at 17.80 per cent. Hence, the underlying Bank Nifty may encounter resistance around 27,550-27,600 levels in case of any volatility before this weekly expiry.
Active Put Options of Sept 12 expiry
On the put option chain, the In-The-Money Bank Nifty Put 27,400 option contract saw maximum trimming of open positions in this weekly expiry. The put option price ended up 113.60 per cent at Rs 212.95, while the OI declined by 50.50 per cent.
The implied volatility was comparatively lower at 11.70 per cent. This confirms that the underlying Bank Nifty is likely to get support around 27,200 levels in the short term.
The out of the money Bank Nifty Put 27,000 contract saw good buying interest in Monday’s trading session. This put option price gained 75.20 per cent to Rs 49.75, while OI rose 15.15 per cent.
The implied volatility of the option price was relatively higher at 16.30 per cent indicating that the underlying is likely to get traction around 27,000 levels in the expiry.
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