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Banking indices had ended higher on Thursday on value-buying by investors in beaten down stocks on the last day of the weekly expiry in the derivatives section. Bank Nifty futures contract gained 10.10 points and closed at 27,544.80. The underlying value of the contract closed at 27,468.70, gaining 92.65 points.
Active call options of Sept 12 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 27,400 option was the actively traded contract on Thursday. The option price closed down by 2.4 per cent at Rs 211.10.
However, open interest in the contract jumped 31.60 per cent. The implied volatility of the option price was moderate at 10.50 per cent. This confirms that the underlying Bank Nifty may encounter strong resistance at 27,600 levels.
The Bank Nifty Call 27,600 option contract is currently an Out-Of-The-Money option that traded very active on Thursday. The contract price was down by 6 per cent at Rs 110.15.
Interestingly, OI zoomed 101.75 per cent. The IV of the option price was at 10.60 per cent which signifies that this option is not very expensive at these price levels. This implies that that underlying Bank Nifty index is likely to face resistance around 27,700 levels, in case of an upside move.
Active put options of Sept 12 expiry
On the put option chain, the In-The-Money Bank Nifty Put 27,500 option contract was the one that traded stronger on Thursday. The put option price was down 5.85 per cent and ended at Rs 180.95.
OI increased by 64 per cent, with an addition of 1.77 lakh shares in this contract. The implied volatility was comparatively higher at 13.35 per cent. This indicates that the underlying Bank Nifty is likely to get support around 27,300 levels in the short-term.
The Bank Nifty Out-Of-The-Money Put 27,300 strike was another actively traded contract on Thursday. This Out-Of-The-Money put option contract shed 15.45 per cent to Rs 104. OI in the counter jumped 112.10 per cent, showing an addition of 1.70 lakh shares here.
The IV of the option price was relatively higher at 13.75 per cent. This confirms that the Bank Nifty underlying is likely to get support around 27,200-27,250 levels in this weekly expiry.
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