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Domestic shares had ended higher by nearly one per cent on Tuesday on positive macroeconomic data, sustained buying by DIIs and robust corporate earnings.
The Bank Nifty August contract gained 212.20 points to 28,082.85. The underlying value of the contract closed at 28,021.70.
Active call options of August 23 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 28,000 option was the actively traded contract on Tuesday. The option price closed at Rs 240, up by 38.25 per cent. Open interest in the contract gained 85.26 per cent.
Traders have taken fresh long positions in the contract. The implied volatility was seen at 10.90 per cent. This confirms that the underlying Bank Nifty may encounter stiff resistance around 28,200 levels in the short term.
The Bank Nifty Call 28,200 option contract is currently an Out-Of-The Money option that turned very active on Tuesday. The contract price gained 39.28 per cent to Rs 142.90.
OI saw an increase of 127 per cent as traders took fresh positions here. The IV of the option price was at 10.95 per cent. This indicates that the underlying Bank Nifty is likely to meet strong resistance around 28,200-28,300 levels for the expiry.
Active put options of August 23 expiry
On the put option chain, the In-The-Money Bank Nifty Put 28,100 option contract was the most actively traded contract. The put option price was down 41.30 per cent at Rs 215.
However, OI jumped 439.50 per cent for this contract. The implied volatility was comparatively higher at 12 per cent which implies that this contract was in good demand. This confirms that the underlying may get traction around 27,900 levels in the short term.
The Bank Nifty Out-Of-The-Money Put 28,000 strike price was one of the most actively traded contracts on Tuesday. This Out-Of-The-Money put option price fell 46.05 per cent to Rs 169.
OI zoomed 556 per cent. The IV of the option price was relatively higher at 12.05 per cent which suggests that the traders expect the underlying to decline. This suggests that the Bank Nifty underlying is likely to get support around 27,800-27,850 levels for this expiry.
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