By Rajesh Palviya
In Nifty current series, a long addition has been witnessed with increase in price of 2.40% and increase in OI by 10% as of Wednesday wherein there was addition of 11.24 lakh shares in OI, increasing from 109.35 lakh to 120.59 lakh shares. Nifty current month rollover stands at 13% as of Wednesday, while Nifty Put Call Ratio, a sentiment indicator used by traders to gauge the market sentiment and mood, is currently at 0.86 compared to 1.26 of last week, indicating a flat-to-mix movement for expiry.
India Vix, a market volatility indicator often called the fear gauge is currently trading 15.91% compared to 15.94% of last week. Implied Volatility of Nifty ATM options for the current series is at 14.87% in contrast to 15.19% of last week, indicating lower volatile movement on either side in the expiry session compared to last week.
Nifty Put options OI distribution shows that 18,100 has highest OI concentration followed by 17,900 & 18,000 which may act as support for current expiry and on the Call front 18,200 followed by 18,300 & 18,500 witnessed significant OI concentration and may act as resistance for current expiry. Options data suggest an immediate trading range between 18,300 and 18,000 levels.
In Nifty Call writing was witnessed at 18,500 , 18,200 & 18,300 ;while on Put side it was seen at 18,000 ,18,200 & 18,100.
Nifty Open Interest Concentration
Nifty Option OI Change
Bank Nifty Outlook
In the current series a long addition has been witnessed in Bank Nifty Fut with an increase in price of 1.07% and increase in OI by 47% as of Wednesday, wherein there was addition of 7.17 lakh shares in OI, increasing from 16.71 lakh to 23.89 lakh shares. Bank Nifty Current series rollover stands at 14% as of Wednesday, while Bank Nifty Put Call Ratio is currently at 1.04 compared to 1.06 of last week indicating flat-to-positive movement for expiry.
Bank Nifty Put options OI distribution shows that 41,500 has highest OI concentration followed by 41,000 & 41,700 which may act as support for current expiry and on the Call front 42,000 followed by 42,500 & 42,200 witnessed significant OI concentration and may act as résistance. Options data indicated an immediate trading range between 42,300 and 41,300 levels with 41,800 acting as pivotal levels.
On a weekly basis Significant Call writing in Bank Nifty was seen at 43,000, 42,500 & 42,200 strike while on put side it was seen at 41,500, 41,700 & 41,800.
Bank Nifty Open Interest Concentration
Bank Nifty Option OI Change
NSE Nifty 50 trading strategy for 17th Nov weekly F&O expiry
In this coming week traders can initiate a Moderately Bullish strategy with reduced premium outflow & lower breakeven point called BULL CALL SPREAD of 17th November expiry wherein trader can buy one lot of 18,200 call strike @ 132 and simultaneously sell one lot of 18,500 call strike @ 31, so that net outflow or maximum loss will be restricted to up to Rs 5,000. If Nifty on expiry closes above the breakeven point of 18,301 the strategy will start making profits. The maximum gains will be restricted up to Rs 10,000; because the gains of a long 18,200 strike call will be offset by the sold 18,500 strike call if Nifty closes above 18,500 on expiry.
(Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities. Views expressed are the author’s own.)