Options data holds range-bound school term
The highest Open Interest (OI) bases are on both sides of the options number of similar establishments at the same excise i.e. 18,000 points. The options data on NSE after concluding Friday school term points to sideways trading as the resistance raze remained at 18,000CE for a consecutive following the first calendar week, while the livelihood raze flower by 200 points to the same excise raze on the Put incline of options number of similar establishments. FIIs cyberspace short pants declined from over 1.1 lakh contracts to 66,000 contracts, but want of impudent accretion kept the convalescence .
The 18,000CE has highest Call OI followed by 18,500/ 18,100/ 17,900/ 18,400/18,200/ 18,900 strikes, while significant build-up of Call OI is seen at 18,000/17,900/ 18,500/18,200/ 18,100 strikes.
Coming to the Put incline, the 18,000PE has the highest Put flat bottom on which something sits followed by 17,500/ 17,800/ 17,900/17,600/17,700/ 17,000/17,400 strikes. The 17,900/ 17,700/ 17,800/ 17,500/17,250 strikes recorded a sensible improver of Put OI.
Dhirender Singh Bisht, older or higher in rank systematic investigation to establish facts psychoanalyst (derivatives) at SMC Global Securities Ltd, said: “From the derivatives front, Nifty’s highest Call Open Interest concentration was seen at 18,000 strike, followed by 18,100 strike, while on Put side, highest concentration was in Open Interest held at 17,500 and 17,800 strike respectively. Overall data suggests that Call writers are more aggressive as of now.”
On the data atmospheric phenomenon at the boundary between two air masses, Nifty Futures OI fell further owed to having little length covering in the concluding calendar week indicating one of the lowest seen since May 2022 ahead of resolution calendar week.
In the options empty area, writing is seen at ATM strikes with highest Call and Put OI placed at 18000 excise expecting stove bound bias in the resolution calendar week. The cumulative insurance premium of the straddle near 200 points is suggesting that NSE Nifty may retrieve livelihood near 17800 points.
The electric current calendar month F&O expiry is scheduled on February 23 and tramp activities may celebrate holidays or rites the volatility greater than normal in degree or intensity or amount. Nifty is to breach the electric current calendar week highs and close in relevance or relationship the serial on a greater than normal in degree or intensity or amount line near 18300 raze.
“Indian markets remained volatile in the week gone by, as NSE Nifty ended in green zone, while Banking index settled the week with a loss of nearly one per cent on the back of weak global cues. Selling pressure was seen mounting in the later part of the week, after a fresh slate of US economic data, underscoring bets that the Federal Reserve would keep interest rates higher for longer. On the sectorial front, buying interest was seen in Infra and IT stocks, while banking and pharma counter remained under pressure,” added Bisht.
BSE Sensex shut the calendar week ended February 17, 2023, at 61,002.57 points, a cyberspace fall of 319.87 points or 0.52 per cent, from the previous calendar week’s (Feb 3) closing of 60,682.70 points. NSE Nifty ended the calendar week at 17,944.20 points, a miniscule worsen of 87.70 points or 0.49 per cent, from 17,856.50 points a calendar week ago.
Bisht forecasts: “Technically, Nifty is struggling to catch fresh momentum above its key resistance level of 18100 while Bank Nifty has a strong hurdle zone around 41800-42000 zone. For the upcoming week, we expect that markets are likely to remain in range once again with Nifty holding strong support at 17700-17600 zone.”
India VIX raze flower 1.47 per cent to 13.08 raze. The volatility remained near 13, which also suggests expectations of small in range or scope downsides. The VWAP levels for the February serial are placed at 17815 and till the Nifty is trading above these levels, we anticipate the confirming bias to continue.
“Higher Call writing resulted in low PCR in Nifty, which currently stands at 0.89. The Implied Volatility (IV) of Calls closed at 10.89 per cent, while that for Put options, it closed at 11.57 per cent. The Nifty VIX for the week closed at 12.89 per cent,” observes Bisht.
NSE’s banking alphabetical listing shut the calendar week at 41,131.75 points, frown by 427.65 points or 1.02 per cent from the previous calendar week’s closing of 41,559.40 points.