Comments
Indian markets fell sharply on Tuesday following sustained capital outflows, weak rupee, rising oil prices and negative global cues due to trade war fears that dampened the domestic sentiment on Tuesday.
Bank Nifty September futures contract plunged 376.50 points to end at 27,637.95. The underlying value of the contract closed at 26,430.75.
Active call options of Sept 6 expiry
Among the call option chain, the In-The-Money Bank Nifty Call 27,400 option was the actively traded contract on Tuesday. The option price closed at Rs 205, down by 60 per cent.
Open interest in the contract saw a remarkable addition of open positions to the tune of 1.02 lakh shares after a sharp decline in the option price. The implied volatility of the option price spiked 22.39 per cent. This confirms that the underlying Bank Nifty may encounter stiff resistance around 27,600-27,650 levels in this weekly expiry .
The Bank Nifty Call 27,700 option contract is currently an Out-Of-The-Money option that turned very active on Tuesday. While the contract price declined by 81.65 per cent to Rs 51.10, OI saw a large addition of open positions to an extent of 7.98 lakh shares.
The IV of the option price was sharply higher at 17.65 per cent which implies there was huge demand for the contract. This indicates that the underlying Bank Nifty is likely to meet strong resistance around 27,700-27,750 levels.
Active put options of Sept 6 expiry
On the put option chain, the In-The-Money Bank Nifty Put 27,600 option contract was the most actively traded contract on Tuesday. The put option price gained 327 per cent to close at Rs 144.10.
OI increased by 6.45 per cent, showing a fresh addition of 23,320 shares in the contract. This confirms that the underlying is likely to regain its ground to 27,600 levels.
The Bank Nifty Out-Of-The-Money Put 27,300 strike price was one of the most actively traded contracts on Tuesday. This Out-Of-The-Money put option price closed up by Rs 36.50 at Rs 48.05. OI zoomed by 190 per cent, showing an addition of 2.63 lakh shares.
The IV of the option price was comparatively higher at 13 per cent. This suggests that the Bank Nifty underlying is likely to get support around 26,350 levels.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.