F&O watch: Nifty support at 15,500-15,600; check Nifty 50, Bank Nifty trading strategies for weekly expiry day

Nifty June rollover stands at 5% until yesterday, whereas provisional information for at present point out roughly 5%.

By Rajesh Palviya

Nifty witnessed a Quick Construct within the present collection with lower in value of -0.51% and improve in OI by 4.49% until at present whereby there was addition of 4.37 Lac shares in OI, growing from 97.22lac to 101.59Lac shares. Nifty July rollover stands at 5% until yesterday, whereas provisional information for at present point out roughly 5%. Nifty Put Name Ratio a sentiment indicator utilized by merchants to gauge the market sentiment and temper, is at the moment at 0.90 in comparison with 1.21 of final week, indicating constructive bias.

India Vix, a market volatility indicator typically known as the “concern gauge“ is at the moment buying and selling 13.05% in comparison with 15.10% of final week. Implied Volatility of Nifty ATM choices for the present collection is at 12.50% in distinction to fifteen.20% of final week, indicating Low unstable motion on both facet in coming session.

Nifty Put choices OI distribution exhibits that 15,500 has highest OI focus adopted by 15,600 & 15,700 which can act as assist for present expiry and on the Name entrance 15,900 adopted by 15,800 & 16,000 witnessed vital OI focus and will act as resistance for present expiry.

In WEEKLY choices there was Name writing seen at 15,900 strike adopted by 15,800 whereas on the Put facet noticeable exercise of writing was witnessed in 15,600 & 15,500 strike costs. Choices information recommend a direct buying and selling vary between 15,600 and 15,900 ranges.

Nifty Open Curiosity focus

Nifty Open Curiosity focus. Picture courtesy Myfno.com

Nifty Open Curiosity Change

Nifty Open Curiosity Change. Picture courtesy Myfno.com

Technique for Nifty – Ratio Unfold

Nifty 15700 Put holds an Highest Open Curiosity Adopted by 15500 & 15600 – which signifies an assist close to 15650 odd ranges & on different hand 15900 & 16000 Name Holds an Highest Open Curiosity which signifies upside is capped close to 15950 – 16000 degree, observing the cues from possibility information we will interpret Nifty ought to expire within the vary of 15650 to 15950 & therefore we advocate Nifty Ratio Unfold.

The place we propose to purchase ATM name possibility 15700 1 lot & promote OTM 15850 name Choice 2 lot ( extra 1 lot of promoting is to scale back the purchase premium since it’s OTM and if nifty doesn’t shut above 15850 time worth will erode finally serving to to scale back the purchase premium by promoting 1 additional leg)

Nifty Ratio unfold

Purchase 15700 CE x 1 Lot cmp 53
Promote 15850 CE x 2 Lot CMP 7
max draw back loss Rs. -1946/-
Revenue vary 15750-15950, Most revenue at 15850 of Rs 9305, Loss will begin above 15950

Financial institution Nifty Outlook

In present collection Financial institution Nifty witnessed brief construct up with a lower in value of -0.18% and improve in OI by 20.29% ; whereby there was addition of three.86Lac shares in OI, growing from 19.04Lac to 22.90Lac shares until at present. Financial institution Nifty Might rollover stands at 4% until yesterday, whereas provisional information for at present point out roughly 4%. Financial institution Nifty Put Name Ratio a sentiment indicator utilized by Merchants to gauge the market sentiment and temper is at the moment at 0.61 in comparison with 0.91 of final week indicating Constructive bias.

Financial institution Nifty Put choices OI distribution exhibits that 35,000 has highest OI focus adopted by 34,500 & 34,000 which can act as assist for present expiry and on the Name entrance 35,000 adopted by 35,500 & 36,000 witnessed vital OI focus and will act as resistance.(35,000 pivotal degree)

In WEEKLY choices Name writing seen at 35,000, 35,200 & 35,300 strike whereas on the put facet it was seen at 34,700, 35,000 & 34,000.Choices information indicated a direct buying and selling vary between 34,000 and 35,500 ranges.

Banknifty Open Curiosity Focus

Banknifty Open Curiosity Focus. Picture courtesy Myfno.com

Financial institution Nifty Choice OI Change

Financial institution Nifty Choice OI Change. Picture courtesy Myfno.com

Technique for Financial institution Nifty – Ratio Unfold

Financial institution Nifty 35000 Put holds the best OI adopted by 34500 & 34700 & at the moment we’re precisely buying and selling at assist zone of 34750-700 degree whereas on the Different Aspect 35000, 35500 & 36000 Name holds the Highest OI so to interpret 35000 ranges will play a vital position (Tug of warfare) & if we maintain above max degree, rally/pullback might be witnessed until 35500 as per possibility information setup which suggests 35700 Name Premium will finally erode to realize our need degree of diminishing premium.

Purchase 35000 CE X 1 LOT @ 65
Promote 35700 CE X 2 LOT @ 8
Web Outflow 49
Max draw back loss – RS -1,225/-
Revenue Vary 35100 – 36300

Loss begins above 36300 Shut solely @ 36400 LOSS Rs -1225/- thereafter incremental loss.

(Rajesh Palviya is Vice President– Analysis (Head Technical & Derivatives) at Axis Securities Restricted. The views expressed are the creator’s personal. Please seek the advice of your monetary advisor earlier than investing.)